Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2016 | Feb. 28, 2017 | Nov. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K/A | ||
Amendment Flag | true | ||
Amendment Description | The registrant filed with the Securities and Exchange Commission an Annual Report on Form 10-K for the year ended May 31, 2016 on August 5, 2016, as amended by that certain Amendment No. 1 filed on September 13, 2016 (the “Form 10-K”). The registrant is filing this Amendment No. 2 solely (1) to correct an error of missing signature on the Report of Independent Registered Public Accounting Firm under Item 8 of the Form 10-K and (2) to correct an error of missing signature on Exhibit 23.1 Consent of Independent Registered Public Accounting Firm to the Form 10-K. As required by Rule 12b-15 under the Securities Exchange Act of 1934, as amended, new certifications by our principal executive officer and principal financial officer are being filed as exhibits to this Amendment No. 2. Except as expressly set forth in this Amendment No. 2, the Form 10-K has not been amended, updated or otherwise modified. | ||
Document Period End Date | May 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | NAUH | ||
Entity Registrant Name | National American University Holdings, Inc. | ||
Entity Central Index Key | 1,399,855 | ||
Current Fiscal Year End Date | --05-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 24,224,924 | ||
Entity Public Float | $ 19,700,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | May 31, 2016 | May 31, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 21,713 | $ 23,300 |
Available for sale investments | 4,117 | 4,102 |
Student receivables — net of allowance of $723 and $1,583 at May 31, 2016 and May 31, 2015, respectively | 3,011 | 14,358 |
Other receivables | 375 | 1,195 |
Income tax receivable | 2,780 | 0 |
Deferred income taxes | 2,621 | 2,335 |
Prepaid and other current assets | 2,078 | 2,151 |
Total current assets | 36,695 | 47,441 |
Total property and equipment - net | 31,273 | 36,390 |
OTHER ASSETS: | ||
Condominium inventory | 621 | 385 |
Land held for future development | 312 | 312 |
Course development — net of accumulated amortization of $3,051 and $2,760 at May 31, 2016 and May 31, 2015, respectively | 817 | 804 |
Other | 998 | 1,212 |
Total other assets | 2,748 | 2,713 |
TOTAL | 70,716 | 86,544 |
CURRENT LIABILITIES: | ||
Current portion of capital lease payable | 285 | 244 |
Accounts payable | 2,913 | 3,246 |
Dividends payable | 1,090 | 1,139 |
Income taxes payable | 110 | 1 |
Deferred income | 1,649 | 1,459 |
Accrued and other liabilities | 5,861 | 6,746 |
Total current liabilities | 11,908 | 12,835 |
DEFERRED INCOME TAXES | 2,190 | 3,283 |
OTHER LONG-TERM LIABILITIES | 4,686 | 6,047 |
CAPITAL LEASE PAYABLE, NET OF CURRENT PORTION | 11,567 | 11,853 |
STOCKHOLDERS' EQUITY: | ||
Common stock, $0.0001 par value (50,000,000 authorized; 28,472,129 issued and 24,140,972 outstanding as of May 31, 2016; 28,262,241 issued and 25,191,414 outstanding as of May 31, 2015) | 3 | 3 |
Additional paid-in capital | 58,893 | 58,336 |
Retained earnings | 4,012 | 13,751 |
Treasury stock, at cost (4,331,157 shares at May 31, 2016 and 3,070,827 shares at May 31, 2015) | (22,477) | (19,455) |
Accumulated other comprehensive loss, net of taxes - unrealized loss on available for sale securities | (2) | (1) |
Total National American University Holdings, Inc. stockholders' equity | 40,429 | 52,634 |
Non-controlling interest | (64) | (108) |
Total stockholders' equity | 40,365 | 52,526 |
TOTAL | $ 70,716 | $ 86,544 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | May 31, 2016 | May 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for student receivables | $ 723 | $ 1,583 |
Accumulated amortization of course development | $ 3,051 | $ 2,760 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 28,472,129 | 28,262,241 |
Common stock, shares outstanding | 24,140,972 | 25,191,414 |
Treasury stock, shares | 4,331,157 | 3,070,827 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
REVENUE: | |||
Academic revenue | $ 88,697 | $ 108,360 | $ 117,099 |
Auxiliary revenue | 6,306 | 7,920 | 9,076 |
Rental income - apartments | 1,110 | 1,164 | 1,138 |
Condominium sales | 0 | 447 | 440 |
Total revenue | 96,113 | 117,891 | 127,753 |
OPERATING EXPENSES: | |||
Cost of educational services | 26,093 | 28,551 | 29,478 |
Selling, general and administrative | 72,211 | 73,301 | 85,286 |
Auxiliary expense | 4,667 | 5,629 | 6,236 |
Cost of condominium sales | 0 | 368 | 386 |
Loss (gain) on disposition of property | 735 | (1,710) | 114 |
Total operating expenses | 103,706 | 106,139 | 121,500 |
OPERATING (LOSS) INCOME | (7,593) | 11,752 | 6,253 |
OTHER INCOME (EXPENSE): | |||
Interest income | 87 | 148 | 142 |
Interest expense | (870) | (891) | (770) |
Other income - net | 178 | 178 | 149 |
Total other expense | (605) | (565) | (479) |
INCOME BEFORE INCOME TAXES | (8,198) | 11,187 | 5,774 |
INCOME TAX BENEFIT (EXPENSE) | 2,894 | (4,433) | (2,306) |
NET (LOSS) INCOME | (5,304) | 6,754 | 3,468 |
NET (INCOME) LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST | (44) | (38) | 17 |
NET (LOSS) INCOME ATTRIBUTABLE TO NATIONAL AMERICAN UNIVERSITY HOLDINGS, INC. AND SUBSIDIARIES | (5,348) | 6,716 | 3,485 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | |||
Unrealized gains (losses) on investments, net of tax (expense) benefit of $(2), $1, and $19 for 2015, 2014 and 2013, respectively | (1) | 2 | (10) |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (1) | 2 | (10) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO NATIONAL AMERICAN UNIVERSITY HOLDINGS, INC. | $ (5,349) | $ 6,718 | $ 3,475 |
Basic net earnings per share attributable to National American University Holdings, Inc. | $ (0.22) | $ 0.27 | $ 0.14 |
Diluted net earnings per share attributable to National American University Holdings, Inc. | $ (0.22) | $ 0.27 | $ 0.14 |
Basic weighted average shares outstanding | 24,651,521 | 25,160,729 | 25,093,096 |
Diluted weighted average shares outstanding | 24,651,521 | 25,165,732 | 25,094,361 |
CONSOLIDATED STATEMENTS OF INC5
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Income Statement [Abstract] | |||
Unrealized (losses) gains on investments, tax | $ (1) | $ 2 | $ (1) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common stock | Additional paid-in capital | Retained earnings | Treasury Stock | Accumulated other comprehensive income | Non-controlling interest | Total |
Balance at May. 31, 2013 | $ 3 | $ 57,656 | $ 12,610 | $ (19,359) | $ 7 | $ (129) | $ 50,788 |
Purchase of shares common stock for the treasury | 0 | 0 | 0 | (64) | 0 | 0 | (64) |
Share based compensation expense | 0 | 1,535 | 0 | 0 | 0 | 0 | 1,535 |
Dividends declared ($0.045 per share) | 0 | 0 | (4,522) | 0 | 0 | 0 | (4,522) |
Net (loss) income | 0 | 0 | 3,485 | 0 | 0 | (17) | 3,468 |
Other comprehensive (loss) income, net of tax | 0 | 0 | 0 | 0 | (10) | 0 | (10) |
Balance at May. 31, 2014 | 3 | 59,191 | 11,573 | (19,423) | (3) | (146) | 51,195 |
Purchase of shares common stock for the treasury | 0 | 0 | 0 | (32) | 0 | 0 | (32) |
Share based compensation expense | 0 | (855) | 0 | 0 | 0 | 0 | (855) |
Dividends declared ($0.045 per share) | 0 | 0 | (4,538) | 0 | 0 | 0 | (4,538) |
Net (loss) income | 0 | 0 | 6,716 | 0 | 0 | 38 | 6,754 |
Other comprehensive (loss) income, net of tax | 0 | 0 | 0 | 0 | 2 | 0 | 2 |
Balance at May. 31, 2015 | 3 | 58,336 | 13,751 | (19,455) | (1) | (108) | 52,526 |
Purchase of shares common stock for the treasury | (3,022) | (3,022) | |||||
Share based compensation expense | 557 | 557 | |||||
Dividends declared ($0.045 per share) | (4,391) | (4,391) | |||||
Net (loss) income | (5,348) | (5,304) | |||||
Other comprehensive (loss) income, net of tax | (1) | (1) | |||||
Balance at May. 31, 2016 | $ 3 | $ 58,893 | $ 4,012 | $ (22,477) | $ (2) | $ (64) | $ 40,365 |
CONSOLIDATED STATEMENTS OF STO7
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||
Number of common shares for treasury | 1,260,330 | 10,454 | 17,190 |
Dividends declared, per share | $ .045 | $ 0.045 | $ 0.045 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net (loss) income | $ (5,304) | $ 6,754 | $ 3,468 |
Adjustments to reconcile net income to net cash flows provided by (used in) operating activities: | |||
Depreciation and amortization | 5,596 | 6,127 | 6,356 |
(Gain) loss on disposition of property and equipment | 735 | (1,710) | 114 |
Provision for uncollectable tuition | 5,403 | 5,602 | 3,879 |
Noncash compensation expense | 557 | (855) | 1,535 |
Deferred income taxes | (1,379) | (1,534) | (1,881) |
Changes in assets and liabilities: | |||
Student and other receivables | 6,764 | (4,332) | (16,383) |
Prepaid and other current assets | 73 | (53) | (1,257) |
Condominium inventory | (236) | 367 | 382 |
Other assets | 202 | (19) | 66 |
Income tax receivable/payable | (2,671) | (1,157) | 1,280 |
Accounts payable | (372) | 230 | (1,839) |
Deferred income | 190 | 149 | 146 |
Accrued and other liabilities | (891) | (337) | 92 |
Other long-term liabilities | (1,361) | (384) | (48) |
Net cash flows provided by (used in) operating activities | 7,306 | 8,848 | (4,090) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of available for sale investments | (3,897) | (50,141) | (36,980) |
Proceeds from sale of available for sale investments | 3,881 | 61,478 | 42,277 |
Purchases of property and equipment | (959) | (1,311) | (4,532) |
Proceeds from sale of property and equipment | 75 | 3,628 | 503 |
Course development | (304) | (143) | (247) |
Payment of deposit on property and equipment | 0 | 0 | (200) |
Payments received on contract for deed | 6 | 160 | 296 |
Payments received on note receivable | 0 | 1,390 | 641 |
Other | 11 | 8 | (31) |
Net cash flows provided by (used in) investing activities | (1,187) | 15,069 | 1,727 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repayments of capital lease payable | (244) | (206) | (157) |
Purchase of treasury stock | (3,022) | (32) | (64) |
Dividends paid | (4,440) | (4,533) | (4,392) |
Net cash flows used in financing activities | (7,706) | (4,771) | (4,613) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (1,587) | 19,146 | (6,976) |
CASH AND CASH EQUIVALENTS - Beginning of year | 23,300 | 4,154 | 11,130 |
CASH AND CASH EQUIVALENTS - End of year | 21,713 | 23,300 | 4,154 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW AND NON-CASH INFORMATION: | |||
Cash paid for income taxes, net of refunds | 1,156 | 7,124 | 2,907 |
Cash paid for interest | 871 | 885 | 787 |
Tenant improvements on capital lease financed through note receivable | 0 | 0 | 2,000 |
Property and equipment purchases included in accounts payable | 63 | 24 | 419 |
Dividends declared at May 31, 2015, 2014 and 2013 | $ 1,090 | $ 1,139 | $ 1,134 |
STATEMENT PRESENTATION AND BASI
STATEMENT PRESENTATION AND BASIS OF CONSOLIDATION | 12 Months Ended |
May 31, 2016 | |
Accounting Policies [Abstract] | |
STATEMENT PRESENTATION AND BASIS OF CONSOLIDATION | The accompanying financial statements are presented on a consolidated basis. The accompanying financial statements include the accounts of National American University Holdings, Inc. (the Company), its subsidiary, Dlorah, Inc. (Dlorah), and its divisions, National American University (NAU or the University), Fairway Hills, the Fairway Hills Park and Recreational Association, the Park West Owners Association, the Vista Park Owners Association, and the Companys interest in Fairway Hills Section III Partnership (the Partnership). The Partnership is 50% owned by Dlorah and 50% owned by individual family members, most of whom are either direct or indirect stockholders of the Company. The Partnership is deemed to be a variable interest entity (VIE) under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 810-10, Consolidation. The Company has determined that the Partnership qualifies as a VIE and that the Company is the primary beneficiary of the Partnership. Accordingly, the Company consolidated assets, liabilities, and net income of the Partnership within its consolidated balance sheets and statements of operations and comprehensive income and appropriately presented the balances as non-controlling interest within the consolidated balance sheets. As of May 31, 2016 and 2015, the consolidated balance sheets include Partnership assets of $611 and $685, respectively, and Partnership liabilities of $91 and $94, respectively. The consolidated statements of operations and comprehensive income include Partnership net income (loss) of $88, $75, and $(34), for the years ended May 31, 2016, 2015, and 2014, respectively. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). Throughout the notes to consolidated financial statements, amounts in tables are in thousands of dollars, except for per share data as otherwise designated. The Companys fiscal year end is May 31. These financial statements include consideration of subsequent events through issuance. All intercompany transactions and balances have been eliminated in consolidation. Unless the context otherwise requires, the terms we, us, our and the Company used throughout this document refer to National American University Holdings, Inc. and its wholly owned subsidiary, Dlorah, Inc., which owns and operates National American University, sometimes referred to as NAU or the University. Estimates |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 12 Months Ended |
May 31, 2016 | |
Accounting Policies [Abstract] | |
NATURE OF OPERATIONS | National American University Holdings, Inc., formerly known as Camden Learning Corporation, was incorporated in the State of Delaware on April 10, 2007. On November 23, 2009, Dlorah, Inc., a South Dakota corporation (Dlorah), became a wholly-owned subsidiary of the Company pursuant to an Agreement and Plan of Reorganization between the Company and Dlorah. The Companys common stock is listed as NAUH on the NASDAQ Global Market. The Company, through Dlorah, owns and operates National American University. NAU is a regionally accredited, proprietary, multi-campus institution of higher learning, offering associate, bachelors, masters and doctoral degree programs in allied health, legal studies, education, business, accounting and information technology. Courses are offered through educational sites and online. During the fiscal year ended May 31, 2016, operations include educational sites located in Colorado, Indiana, Kansas, Minnesota, Missouri, Nebraska, New Mexico, Oklahoma, Oregon, South Dakota, and Texas; distance learning service center in Texas; and distance learning operations and central administration offices in Rapid City, South Dakota. A substantial portion of NAUs academic income is dependent upon federal student financial aid programs, employer tuition assistance, and contracts to provide online course development, hosting and technical assistance to other educational institutions. To maintain eligibility for financial aid programs, NAU must comply with U.S. Department of Education requirements, including the maintenance of certain financial ratios. The Company, through Dlorahs Fairway Hills real estate division, also manages apartment units and develops and sells multi-family residential real estate in Rapid City, South Dakota. Approximately 92% of the Companys total revenues for each of the years ended May 31, 2016, 2015, and 2014, respectively, were derived from NAUs academic revenue. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
May 31, 2016 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Cash and Cash Equivalents Investments The Companys investments were comprised of the following at May 31: 2016 2015 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Fair Value Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Fair Value Certificate of Deposits $ 4,119 $ - $ (2 ) $ 4,117 $ 4,102 $ - $ - $ 4,102 As of May 31, 2016, the Companys investments all mature in one to three years. Declines in the fair value of individual securities classified as available-for-sale below their amortized cost that are determined to be other than temporary result in write-downs of the individual securities to their fair value, with the resulting write-downs included in current earnings as realized losses. Unrealized losses that may occur are generally due to changes in interest rates and, as such, are considered by the Company to be temporary. Management evaluates securities for other-than-temporary impairment on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investments in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. The Company had no impairments during the year ended May 31, 2016. Student Receivables Other Receivables Property and Equipment Years Buildings and building improvements 1940 Land improvements 1020 Furniture, vehicles, and equipment 515 For tax purposes, depreciation is computed using the straight-line and accelerated methods. Property and equipment net consists of the following as of May 31 (in thousands): 2016 2015 Land $ 119 $ 119 Land improvements 23 23 Buildings and building improvements 39,759 40,718 Furniture, vehicles, and equipment 27,904 28,171 Total gross property and equipment 67,805 69,031 Less accumulated depreciation (36,532 ) (32,641 ) Total net property and equipment $ 31,273 $ 36,390 Condominium Inventory Capitalized Course Development Costs The Company capitalizes course development costs. Costs that qualify for capitalization are external direct costs, payroll, and payroll-related costs. Costs related to general and administrative functions are not capitalizable and are expensed as incurred. Capitalization ends at such time that the course and/or material is available for general use by faculty and students. After becoming available for general use, the costs are amortized on a course-by-course basis over a period of three to five years. After the amortization period commences, the cost of maintenance and support is expensed as incurred, because it does not provide future benefit. If it is determined that the curriculum will not be used, the capitalized curriculum costs are written off and expensed in the period of this determination. Impairment of Long-Lived Assets During November 2015, the Company announced the closure of the Denver campus, effective February 29, 2016. In January 2016, the Company announced the closure of two additional campuses: Weldon Spring, Missouri and Tigard, Oregon, both effective March 1, 2016. Due to the closure of these three campuses, undepreciated leasehold improvements and other fixed assets of $85, $328 and $394, respectively, were fully written off during the year ended May 31, 2016. The write-down is included in loss on disposition of property, within the NAU segment, in the consolidated financial statements. The Company had no impairments in 2015 or 2014. Deferred Income Taxes Non-Controlling Interest Leases Academic Revenue Recognition Auxiliary Revenue Rental Income Rental Expense Advertising |
RECENTLY ADOPTED AND NEW ACCOUN
RECENTLY ADOPTED AND NEW ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
May 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENTLY ADOPTED AND NEW ACCOUNTING PRONOUNCEMENTS | In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern In February 2015, the FASB issued ASU No. 2015-02, Amendments to the Consolidation Analysis In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Leases In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting |
DEPARTMENT OF EDUCATION REQUIRE
DEPARTMENT OF EDUCATION REQUIREMENTS | 12 Months Ended |
May 31, 2016 | |
Text Block [Abstract] | |
DEPARTMENT OF EDUCATION REQUIREMENTS | The University extends unsecured credit to a portion of the students who are enrolled throughout the campuses for tuition and other educational costs. A substantial portion of credit extended to students is repaid through the students participation in various federal financial aid programs authorized by Title IV Higher Education Act of 1965, as amended (the Higher Education Act). The University is required under 34 CFR 600.5(d) to maintain at least 10% of its revenues (calculated on a cash basis) from non-Title IV program funds, commonly referred to as the 90/10 Rule. An institution is subject to loss of eligibility to participate in Title IV programs if it fails to meet the 10% threshold for two consecutive fiscal years. If the Company were to violate the 90/10 Rule, it would become ineligible to participate in Title IV programs as of the first day of the fiscal year following the second consecutive fiscal year in which it exceeded the 90% Title IV program funds threshold and would be unable to regain eligibility for two fiscal years thereafter. The University believes they are in compliance with this requirement for the years ended May 31, 2016, 2015 and 2014, as shown in the underlying calculation: 2016 2015 2014 Title IV HEA funds received $ 90,238 $ 106,305 $ 107,333 Academic revenue $ 103,904 =86.85% $ 119,200 =89.18% $ 120,169 =89.32% (cash basis) To participate in Title IV Programs, a school must be authorized to offer its programs of instruction by relevant state education agencies, be accredited by an accrediting commission recognized by the U.S. Department of Education (the Department of Education), and be certified as an eligible institution by the Department of Education. For this reason, educational institutions are subject to extensive regulatory requirements imposed by all of these entities. After an educational institution receives the required certifications by the appropriate entities, the educational institution must demonstrate compliance with the Department of Educations regulations pertaining to Title IV Programs on an ongoing basis. Included in these regulations is the requirement that the Company must satisfy specific standards of financial responsibility. The Department of Education evaluates educational institutions for compliance with these standards each year, based upon an educational institutions annual audited financial statements, as well as following any changes in ownership. Under regulations which took effect July 1, 1998, the Department of Education calculates an educational institutions composite score for financial responsibility based on its (i) equity ratio, which measures the educational institutions capital resources, ability to borrow and financial viability; (ii) primary reserve ratio, which measures the educational institutions ability to support current operations from expendable resources; and (iii) net income ratio, which measures the educational institutions ability to operate at a profit. This composite score can range from -1 to +3. An educational institution that does not meet the Department of Educations minimum composite score requirements of 1.5 may establish its financial responsibility by posting a letter of credit or complying with additional monitoring procedures as defined by the Department of Education. Based on the consolidated financial statements for the 2016, 2015 and 2014 fiscal years, the Universitys calculations result in a composite score of 1.8, 3.0, and 2.3, respectively. Therefore the University currently meets the minimum composite score requirement as most recently required by the Department of Education. Finally, to remain eligible to participate in Title IV programs, an educational institutions student loan cohort default rates must remain below certain specified levels. An educational institution loses eligibility to participate in Title IV programs if its cohort default rate equals or exceeds 40% for any given year or 30% for three consecutive years. Our official cohort default rates for federal fiscal years 2012 and 2011 are 20.8% and 21.4%, respectively. The draft cohort rate for federal fiscal year 2013 is 23.7%. The Universitys current certification to participate in the Title IV programs, which is not provisional, was effective in June 2013 and extends through March 31, 2019. |
CONDOMINIUM PROJECT
CONDOMINIUM PROJECT | 12 Months Ended |
May 31, 2016 | |
Text Block [Abstract] | |
CONDOMINIUM PROJECT | The Company built 24 condominium units to be sold to the general public called Vista Park. These condominium units are accounted for within condominium inventory within the consolidated balance sheets, and the sales of the condominium units are recorded within condominium sales within the consolidated statements of income and comprehensive income. No units were sold in the year ended May 31, 2016; a total of twelve units were sold from the inception of the project through year ended May 31, 2016. |
CONTRACT FOR DEED
CONTRACT FOR DEED | 12 Months Ended |
May 31, 2016 | |
Contractors [Abstract] | |
CONTRACT FOR DEED | The Company signed a contract for deed on its former Rapid City campus on March 28, 2013 for $4,000 (see Note 9 for capital lease on new campus). The sale did not meet the accounting requirements to be consummated and was not recorded at this time. On July 11, 2014, the contract for deed was settled. The Company collected the outstanding proceeds, which included $3,230 of principal and $85 of interest that was offset by $59 of lease-back payments and maintenance expenses related to the long-term operating lease. All remaining liens on the property were released and deemed sold, resulting in a gain of $1,743. |
LINES OF CREDIT
LINES OF CREDIT | 12 Months Ended |
May 31, 2016 | |
Debt Disclosure [Abstract] | |
LINES OF CREDIT | The University maintained a $3,000 unsecured revolving line of credit with Great Western Bank that was subject to annual renewals and matured on May 31, 2016. The Company chose not to renew the line for the next fiscal year due to adequate cash available. Advances under the line bore interest at prime (3.50% at May 31, 2016). No advances were made on this line of credit in 2016, 2015 or 2014. |
LEASES
LEASES | 12 Months Ended |
May 31, 2016 | |
Leases [Abstract] | |
LEASES | The University leases building facilities for branch operations and equipment for classroom operations under operating leases with various terms and conditions. Total rent expense for the years ended May 31, 2016, 2015 and 2014, was $5,737, $6,037, and $6,025, respectively, which is included in selling, general, and administrative expenses on the consolidated statements of operations and comprehensive income. Future minimum lease payments on non-cancelable operating leases for the five years ending May 31 are as follows (in thousands)- 2017 $ 6,028 2018 6,039 2019 5,769 2020 5,213 2021 4,139 Thereafter 9,376 Future minimum lease payments include the remaining lease payments for the Tigard and Weldon Spring campuses. The associated lease payments were not accelerated because we are still receiving economic benefit from the leases. The Denver campus lease terminated on February 29, 2016; therefore, is not included in the payments listed above. As part of ongoing operations, the Company entered into a capital lease arrangement for additional space that houses the corporate headquarters, distance learning operations, and the new Rapid City campus operations (see Note 7). During the year ended May 31, 2014, the Company increased its capital lease obligation by $2,000 to account for tenant improvements. The Company initially paid for the improvements and reached an agreement with the lessor to be reimbursed for the amount under the terms of a $2,000 note receivable. The note receivable required monthly payments of $14 at 6% that directly offset the monthly payments to the lessor under the capital lease obligation. In June 2014, the landlord of the property paid the $1,373 remaining balance of the note receivable. The Company is obligated to make future payments under the capital lease obligation, which totaled $20.3 million, had a net present value of $11.9 million as of May 31, 2016, and was recognized as current and non-current capital lease payable of $285 and $11,567 at May 31, 2016 and $244 and $11,853 at May 31, 2015, respectively. The asset totals $10,600, and accumulated depreciation totals $2,429 and $1,899 at May 31, 2016 and 2015, respectively. The net amount is included in net property and equipment in the consolidated balance sheets. The following is a schedule of future minimum commitments under the revised capital lease obligation as of May 31, 2016: 2017 $ 1,137 2018 1,159 2019 1,183 2020 1,207 2021 1,231 Thereafter 14,370 Total future minimum lease obligation $ 20,287 Less: Imputed interest on capital leases (8,435 ) Net present value of lease obligations $ 11,852 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
May 31, 2016 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | The authorized capital stock for the Company is 51,100,000 shares, consisting of (i) 50,000,000 shares of common stock, par value $0.0001 and (ii) 1,000,000 shares of preferred stock, par value $0.0001, and (iii) 100,000 shares of class A common stock, par value $0.0001. Of the authorized shares, 24,140,972 and 25,191,414 shares of common stock were outstanding as of May 31, 2016 and 2015, respectively. No shares of preferred stock or Class A common stock were outstanding at May 31, 2016 and 2015. Stock Repurchase Plan On August 6, 2015, the Companys Board of Directors authorized the repurchase of up to 350,000 shares, for aggregate consideration not to exceed $1.25 million, of the Companys outstanding common stock in both open market and privately negotiated transactions. The plan is authorized for a period of one year from August 10, 2015. The timing and actual number of shares purchased depends on a variety of factors such as price, corporate and regulatory requirements, and other prevailing market conditions. During the year ended May 31, 2016, the Company repurchased 353,581 shares for $868 under this authorization. In addition, the Company repurchased 853,073 shares of its outstanding common stock for $2,039 from a single unrelated shareholder. This repurchase was approved by the Companys Board of Directors and was separate from the August 6, 2015 repurchase authorization. On February 12, 2016, the Company announced that its Board of Directors authorized the Company to repurchase up to $500 worth of shares of its common stock in open market or privately negotiated transactions, at a price of $1.75 or less per share, for aggregate consideration not to exceed $500, to be implemented during a period of one year from the date the stock repurchase plan is announced to the public. During the year ended May 31, 2016, the Company repurchased 30,440 shares for $50 under this authorization. During the years ended May 31, 2016 and 2015, respectively, $65 and $32 of additions to treasury stock resulted from the settlement of stock-based compensation. Stock-Based Compensation In December 2009, the Company adopted the 2009 Stock Option and Compensation Plan (the Plan) pursuant to which the Company may grant restricted stock awards, restricted stock units and stock options to aid in recruiting and retaining employees, officers, directors and other consultants. Restricted stock awards accrue dividends that are paid when the shares vest. Restricted stock unit awards do not accrue dividends prior to vesting. Grants are issued at prices determined by the compensation committee, generally equal to the closing price of the stock on the date of the grant, vest over various terms (generally three years), and expire ten years from the date of the grant. The Plan allows vesting based upon performance criteria. Certain option and share awards provide for accelerated vesting if there is a change in control of the Company (as defined in the Plan). The fair value of stock options granted is calculated using the Black-Scholes option pricing model. Share options issued under the Plan may be incentive stock options or nonqualified stock options. At May 31, 2016, all stock options issued have been nonqualified stock options. A total of 1,300,000 shares were authorized by the Plan. Shares forfeited or canceled are eligible for reissuance under the Plan. At May 31, 2016, 431,397 shares of common stock remain available for issuance under the Plan. In October 2013, the Companys Board of Directors adopted the 2013 Restricted Stock Unit Plan (the 2013 Plan) authorizing the issuance of up to 750,000 shares of the Companys stock to participants in the 2013 Plan. The Company may grant restricted stock awards or restricted stock units to aid in recruiting and retaining employees, officers, directors and other consultants. Restricted stock awards accrue dividends that are paid when the shares vest. Restricted stock unit awards do not accrue dividends prior to vesting. Restricted stock grants are issued at prices determined by the compensation committee, generally equal to the closing price of the stock on the date of the grant and vest over various terms. Shares forfeited or canceled are eligible for reissuance under the Plan. At May 31, 2016, 750,000 shares of common stock remain available for issuance under the 2013 Plan. Restricted stock The fair value of restricted stock awards was calculated using the Companys stock price as of the associated grant date, and the expense is accrued ratably over the vesting period of the award. During the year ended May 31, 2015, the Company awarded 42,155 restricted stock awards with time based vesting at a grant date fair value of $3.11 per share to members of the board of directors. These shares vested on October 20, 2015. During the year ended May 31, 2015, 580,000 RSUs granted June 1, 2013 under the 2013 Plan were canceled and the related compensation expense previously recorded of $1,170 was reversed as the performance criteria was not attained. During the quarter ended November 30, 2015, the Company issued 187,500 restricted stock units (RSUs) with performance based vesting under the 2013 Plan. The number of shares to be earned was determined by the Companys profitability and other operating metrics during the year ended May 31, 2016. The grant date fair value of the RSUs was $3.06 per share. No expense was recorded as targeted profitability and operating metrics were not attained and all shares were canceled on May 31, 2016. During the year ended May 31, 2016, the Company awarded 40,485 restricted stock awards with time based vesting at a grant date fair value of $2.47 per share to members of the board of directors. Shares vest one year from the grant date and require board service for the entire year. Compensation expense associated with restricted stock awards, totaled $116 for the year ended May 31, 2016. For the year ended May 31, 2015 compensation expense for restricted stock awards totaled $122, and a reversal of $1,170 associated with the performance based restricted stock units canceled was recorded. For the year ended May 31, 2014, compensation totaled $82 for restricted stock awards and $1,170 for performance based restricted stock units. At May 31, 2016, unamortized compensation cost of restricted stock awards totaled $35. The unamortized cost is expected to be recognized over a weighted-average period of 0.4 years as of May 31, 2016. A summary of restricted share awards activity as of May 31, 2016 and 2015, and the changes during the years then ended is presented below: Restricted Shares Shares Weighted Average Grant Date Fair Value Non-vested shares at May 31, 2014 608,170 $ 4.01 Granted 42,155 3.11 Vested (28,170 ) 3.55 Forfeited (580,000 ) 4.03 Non-vested shares at May 31, 2015 42,155 $ 3.11 Granted 40,485 2.47 Vested (42,155 ) 3.11 Forfeited 0 0 Non-vested shares at May 31, 2016 40,485 $ 2.47 Unrestricted stock Unrestricted stock is issued to certain employees in settlement of a portion of their salaries and bonuses. Compensation expense in the consolidated statements of operations and comprehensive income associated with these unrestricted stock issuances totaled $320, $166 and $261, respectively, for the years ended May 31, 2016, 2015, and 2014. Stock options The Company accounts for stock option-based compensation by estimating the fair value of options granted using a Black-Scholes option valuation model. The Company recognizes the expense for grants of stock options on a straight-line basis in the consolidated statements of operations and comprehensive income as selling, general and administrative expense based on their fair value over the requisite service period. For stock options issued during the years ended May 31, 2016 and 2015, the following assumptions were used to determine fair value: Assumptions used: 2016 2015 Expected term (in years) 5.75 5.50 Expected volatility 50.40 % 51.40 % Weighted average risk free interest rate 1.54 % 1.52 % Weighted average risk free interest rate range 1.54-1.54 % 1.52-1.52 % Weighted average expected dividend 5.92 5.79 % Weighted average expected dividend range 5.92-5.92 % 5.79-5.79 % Weighted average fair value $ 0.84 $ 0.88 Expected volatilities are based on historic volatilities from the traded shares of NAUH. The expected term of options granted is the safe harbor period. The risk-free interest rate for periods matching the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Expected dividend is based on the historic dividend of the Company. A summary of option activity under the Plan as of May 31, 2016 and 2015, and changes during the years then ended is presented below: Stock Options Shares Weighted average exercise price Weighted average remaining contractual life (in years) Aggregate intrinsic value Outstanding at May 31, 2014 75,750 $ 7.17 7.6 $ 0 Granted 12,500 3.11 Exercised 0 0 Forfeited or canceled (9,500 ) 8.70 Outstanding at May 31, 2015 78,750 $ 6.34 7.1 $ 0 Exercisable at May 31, 2015 66,250 $ 6.85 6.8 $ 0 Outstanding at May 31, 2015 78,750 $ 6.34 7.1 $ 0 Granted 148,475 3.06 Exercised 0 0 Forfeited or canceled (34,875) 4.67 Outstanding at May 31, 2016 192,350 $ 4.11 8.4 $ 0 Exercisable at May 31, 2016 192,350 $ 4.11 8.4 $ 0 The Company recorded compensation expense for stock options of $121, $27 and $22, for the years ended May 31, 2016, 2015 and 2014, respectively, in the consolidated statements of operations. As of May 31, 2016, there was no unrecognized compensation cost related to unvested stock option based compensation arrangements granted under the Plan. The Company plans to issue new shares as settlement of options exercised. There were no options exercised during the years ended May 31, 2016 or 2015. Dividends The following table presents details of the Companys fiscal 2016 and 2015 dividend payments: Date declared Record date Payment date Per share April 7, 2014 June 30, 2014 July 11, 2014 $ 0.0450 August 11, 2014 September 30, 2014 October 10, 2014 $ 0.0450 October 6, 2014 December 31, 2014 January 16, 2015 $ 0.0450 January 24, 2015 March 31, 2015 April 17, 2015 $ 0.0450 April 13, 2015 June 30, 2015 July 10, 2015 $ 0.0450 August 10, 2015 September 30, 2015 October 9, 2015 $ 0.0450 October 5, 2015 December 31, 2015 January 15, 2016 $ 0.0450 January 23, 2016 March 31, 2016 April 8, 2016 $ 0.0450 April 4, 2016 June 30, 2016 July 8, 2016 $ 0.0450 |
EMPLOYEE COMPENSATION PLANS
EMPLOYEE COMPENSATION PLANS | 12 Months Ended |
May 31, 2016 | |
Postemployment Benefits [Abstract] | |
EMPLOYEE COMPENSATION PLANS | Employee Benefit Plan Payable Compensation Plans In addition, the Company has an approved Senior Executive Level Officer Compensation Plan and a Named Executive Officer Compensation Plan. Each compensation plan has a base salary component, quarterly achievement award component and an annual achievement award component as defined in the agreements. |
SELF-INSURED HEALTH INSURANCE
SELF-INSURED HEALTH INSURANCE | 12 Months Ended |
May 31, 2016 | |
Text Block [Abstract] | |
SELF-INSURED HEALTH INSURANCE | The Company maintains a self-insured health insurance plan for employees. Under this plan, the Company pays a monthly fee to its administrator, as well as claims submitted by its participants. As there generally is a lag between the time a claim is incurred by a participant and the time the claim is submitted, the Company has recorded a liability for outstanding claims of $381 and $340 at May 31, 2016 and 2015, respectively. Such liability is reported within accrued and other liabilities in the consolidated balance sheets. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
May 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Components of the provision for income taxes for the years ended May 31, 2016, 2015 and 2014, were as follows: 2016 2015 2014 Current tax (benefit) expense: Federal $ (1,579 ) $ 5,216 $ 3,678 State 64 751 509 (1,515 ) 5,967 4,187 Deferred tax (benefit): Federal (1,183 ) (1,396 ) (1,740 ) State (196 ) (138 ) (141 ) (1,379 ) (1,534 ) (1,881 ) Total tax (benefit) expense $ (2,894 ) $ 4,433 $ 2,306 The effective tax rate varies from the statutory federal income tax rate for the following reasons: 2016 2015 2014 Statutory (34.0 )% 34.0 % 34.0 % State income taxes net of federal benefit (1.9 ) 3.6 4.2 Permanent differences and other 0.6 2.0 1.7 Effective income tax rate (35.3 )% 39.6 % 39.9 % Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Companys deferred assets (liabilities) as of May 31 were as follows: 2016 2015 Deferred income tax assets: Account receivable allowances $ 317 $ 616 Bad debt write-offs 2,131 1,544 Other 60 130 Accrued salaries 623 717 Start up costs 246 276 Capital lease obligations 4,445 4,536 Net operating loss carryforwards - expires 2021-2036 155 - Deferred rent 2,037 2,268 Total deferred income tax assets 10,014 10,087 Deferred income tax liabilities: Fixed assets and course development (9,133 ) (10,493 ) Prepaid expenses (450 ) (542 ) Total deferred income tax liabilities (9,583 ) (11,035 ) Net deferred income tax assets (liabilities) $ 431 $ (948 ) The Company considered a valuation allowance for the deferred income tax assets. No valuation allowance was recorded for the past three years because we believe it is more likely than not that all deferred tax asset will be realized. The Company follows the guidance of ASC Topic 740, Income Taxes Accounting for Uncertainty in Income Taxes an interpretation of FASB Statement No. 109, The Company files income tax returns in the U.S. federal jurisdiction and various states. Because of closure of an Internal Revenue Service examination, the Company is generally no longer subject to U.S. federal income tax or state and local tax examinations for years before 2012. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
May 31, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | Basic earnings per share (EPS) is computed by dividing net income attributable to the Company by the weighted average number of shares of common stock outstanding during the applicable period. Diluted earnings per share reflect the potential dilution that could occur assuming vesting, conversion or exercise of all dilutive unexercised options and restricted stock. The following is a reconciliation of the numerator and denominator for the basic and diluted EPS computations: For the year ended May 31, 2016 2015 2014 Numerator: Net (loss) income attributable to National American University Holdings, Inc. $ (5,349 ) $ 6,718 $ 3,475 Denominator: Weighted average shares outstanding used to compute basic net income per common share 24,651,521 25,160,729 25,093,096 Incremental shares issuable upon the assumed exercise of stock options - - - Incremental shares issuable upon the assumed vesting of restricted shares - 5,003 1,265 Common shares used to compute diluted net income per share 24,651,521 25,165,732 25,094,361 Basic net (loss) income per common share (0.22 ) $ 0.27 $ 0.14 Diluted net (loss) income per common share $ (0.22 ) $ 0.27 $ 0.14 A total of 192,350, 78,750 and 75,750 shares of common stock subject to issuance upon exercise of stock options for the years ended May 31, 2016, 2015 and 2014, respectively, have been excluded from the calculation of diluted EPS as the effect would have been anti-dilutive. A total of 82,640 shares of common stock subject to vesting and issuance upon exercise of restricted stock for the year ended May 31, 2016 (7,446 of these shares had potential dilutive impact for the year ended May 31, 2016), have been excluded from the calculation of diluted EPS as the effect would have been antidilutive. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
May 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | From time to time, NAU is a party to various claims, lawsuits or other proceedings relating to the conduct of its business. Although the outcome of litigation cannot be predicted with certainty and some claims, lawsuits or other proceedings may be disposed of unfavorably, management believes, based on facts presently known, that the outcome of such legal proceedings and claims, lawsuits or other proceedings will not have a material effect on the Companys consolidated financial position, cash flows or future results of operations. On November 21, 2014, the U.S. Department of Education notified NAU of its final audit determination with respect to the Title IV compliance audit for the period June 1, 2012 through May 31, 2013. The final audit determination asserts that NAU improperly disbursed Title IV program funds to students at the Wichita West campus location before it was approved as an additional location for Title IV program participation requirements by the Department in August 2013. This resulted in a requirement to return approximately $664 in Title IV funds and assessed interest to the Department, as it is deemed a return of previously recorded revenue. This amount was timely remitted and is shown as a direct reduction of academic revenue during the year ended May 31, 2015. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
May 31, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Following is a description of each category in the fair value hierarchy and the financial assets and liabilities of the Company that are included in each category at May 31, 2016 and 2015: Level 1 Level 2 · Determining which instruments are most similar to the instrument being priced requires management to identify a sample of similar securities based on the coupon rates, maturity, issuer, credit rating and instrument type, and subjectively selecting an individual security or multiple securities that are deemed most similar to the security being priced; and · Determining whether a market is considered active requires management judgment. Level 3 The following table summarizes certain information for assets and liabilities measured at fair value on a recurring basis: Quoted prices in active markets (level 1) Other observable inputs (level 2) Unobservable inputs (level 3) Fair value May 31, 2016 Investments: Certificates of deposit $ 0 $ 4,117 $ 0 $ 4,117 Money market accounts included in cash equivalents 38 0 0 38 Total assets at fair value $ 38 $ 4,117 $ 0 $ 4,155 May 31, 2015 Investments: Certificates of deposit $ 244 $ 3,858 $ 0 $ 4,102 Money market accounts included in cash equivalents 269 0 0 269 Total assets at fair value $ 513 $ 3,858 $ 0 $ 4,371 Following is a summary of the valuation techniques for assets and liabilities recorded in the consolidated balance sheets at fair value on a recurring basis: Certificates of Deposit (CDs) and money market accounts: Fair value of financial instruments: |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
May 31, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | Operating segments are defined as business areas or lines of an enterprise about which financial information is available and evaluated on a regular basis by the chief operating decision makers, or decision-making groups, in deciding how to allocate capital and other resources to such lines of business. The Company operates two reportable segments: NAU and other. The NAU segment contains the revenues and expenses associated with the University operations. The Company considers each campus location to be an operating segment, and they are aggregated into the NAU segment for financial reporting purposes. The Other segment contains primarily real estate. General administrative costs of the Company are allocated to specific divisions of the Company. The following table presents the reportable segment financial information, in thousands: For the year ended May 31, For the year ended May 31, For the year ended May 31, 2016 2015 2014 Consolidated Consolidated Consolidated NAU Other Total NAU Other Total NAU Other Total Revenue: Academic $ 88,697 $ - $ 88,697 $ 108,360 $ - $ 108,360 $ 117,099 $ - $ 117,099 Auxiliary 6,306 - 6,306 7,920 - 7,920 9,076 - 9,076 Rental income apartments - 1,110 1,110 - 1,164 1,164 - 1,138 1,138 Condominium sales - - - - 447 447 - 440 440 Total revenue 95,003 1,110 96,113 116,280 1,611 117,891 126,175 1,578 127,753 Operating expenses: Cost of educational services 26,093 - 26,093 28,551 - 28,551 29,478 - 29,478 Selling, general & administrative 70,819 1,392 72,211 71,681 1,620 73,301 83,627 1,659 85,286 Auxiliary 4,667 - 4,667 5,629 - 5,629 6,236 - 6,236 Cost of condominium sales - - - - 368 368 - 386 386 Loss (gain) on disposition of property 810 (75) 735 114 (1,824) (1,710) 211 (97) 114 Total operating expenses 102,389 1,317 103,706 105,975 164 106,139 119,552 1,948 121,500 (Loss) income from operations (7,386) (207) (7,593) 10,305 1,447 11,752 6,623 (370) 6,253 Other income (expense): Interest inc 80 7 87 51 97 148 54 88 142 Interest exp (870) - (870) (883) (8) (891) (769) (1) (770) Other income (loss) - net - 178 178 - 178 178 - 149 149 Total other (expense) income (790) 185 (605) (832) 267 (565) (715) 236 (479) (Loss) income before taxes $ (8,176) $ (22) $ (8,198) $ 9,473 $ 1,714 $ 11,187 $ 5,908 $ (134) $ 5,774 As of and for the Year Ended As of and for the Year Ended As of and for the Year Ended May 31, 2016 May 31, 2015 May 31, 2014 Consolidated Consolidated Consolidated NAU Other Total NAU Other Total NAU Other Total Total assets $ 61,694 $ 9,022 $ 70,716 $ 78,042 $ 8,502 $ 86,544 $ 76,383 $ 12,074 $ 88,457 Expenditures for long-lived assets $ 710 $ 249 $ 959 $ 859 $ 452 $ 1,311 $ 3,094 $ 1,438 $ 4,532 Depreciation & amortization $ 5,058 $ 538 $ 5,596 $ 5,546 $ 581 $ 6,127 $ 5,765 $ 591 $ 6,356 |
SUMMARIZED QUARTERLY FINANCIAL
SUMMARIZED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
May 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
SUMMARIZED QUARTERLY FINANCIAL DATA (UNAUDITED) | The following table sets forth selected unaudited quarterly financial information for the last eight quarters. Quarter First Second Third Fourth Fiscal Year Ended May 31, 2016 Revenues $ 24,649 $ 25,739 $ 22,678 $ 23,047 Operating loss (1,916 ) (1,358 ) (2,844 ) (1,475 ) Net loss (1,298 ) (1,170 ) (1,875 ) (961 ) Net loss attributable to NAUH and Subsidiaries (1,309 ) (1,178 ) (1,891 ) (970 ) Net loss per share (common): Basic (0.05 ) (0.05 ) (0.08 ) (0.04 ) Diluted (0.05 ) (0.05 ) (0.08 ) (0.04 ) Fiscal Year Ended May 31, 2015 Revenues Operating income $ 29,304 $ 30,638 $ 29,083 $ 28,866 Net income 3,536 4,698 2,581 937 Net income attributable to 2,168 2,840 1,478 268 NAUH and Subsidiaries Net income per share (common): 2,170 2,826 1,464 256 Basic 0.09 0.11 0.06 0.01 Diluted 0.09 0.11 0.06 0.01 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
May 31, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | We evaluated subsequent events after the balance sheet date through the date the consolidated financial statements were available to be reissued. We did not identify any additional material events or transactions occurring during this subsequent event reporting period, that had not already been disclosed in our 10Qs and 8Ks subsequent to the original filing of the 10K on August 5, 2016, and that would require further recognition or disclosure in these reissued consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN28
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
May 31, 2016 | |
Cash and Cash Equivalents | The Company considers all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. Cash is held in bank accounts that periodically exceed insured limits; however, no losses have occurred, and the Company feels the risk of loss is not significant. |
Investments | The Companys investments were comprised of the following at May 31: 2016 2015 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Fair Value Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Fair Value Certificate of Deposits $ 4,119 $ - $ (2 ) $ 4,117 $ 4,102 $ - $ - $ 4,102 As of May 31, 2016, the Companys investments all mature in one to three years. Declines in the fair value of individual securities classified as available-for-sale below their amortized cost that are determined to be other than temporary result in write-downs of the individual securities to their fair value, with the resulting write-downs included in current earnings as realized losses. Unrealized losses that may occur are generally due to changes in interest rates and, as such, are considered by the Company to be temporary. Management evaluates securities for other-than-temporary impairment on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investments in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. The Company had no impairments during the year ended May 31, 2016. |
Student Receivables | Student receivables are recorded at estimated net realizable value and are revised periodically based on estimated future collections. Interest and service charges are applied to all past due student receivables; however, collections are first applied to principal balances until such time that the entire principal balance has been received. Student accounts are charged off only when reasonable collection means are exhausted. Bad debt expense is included in selling, general and administrative expenses on the consolidated statements of operations. |
Other Receivables | Other Receivables consist primarily of the current portion of institutional receivables, which are amounts due from students and are stated at net realizable value. Long-term portion of these institutional receivables are included in other assets. |
Property and Equipment | Property and equipment are stated at cost. Renewals and improvements exceeding five hundred dollars are capitalized, while repairs and maintenance are expensed when incurred. Upon the retirement, sale or disposition of assets, costs and related accumulated depreciation are eliminated from the accounts and any gain or loss is reflected in loss (gain) in disposition of property. For financial statement purposes, depreciation includes the depreciation of the capital lease asset in the amount of $530 for each of the fiscal years 2016, 2015 and 2014. Total depreciation and amortization expense in operating expenses was $5,596, $6,127, and $6,356 for the fiscal years 2016, 2015 and 2014, respectively. The amortization portion of these amounts relates to capitalized course development costs and was $291, $339, and $354 for the fiscal years 2016, 2015 and 2014, respectively. Depreciation is computed using the straight-line method over the following estimated useful lives: Years Buildings and building improvements 1940 Land improvements 1020 Furniture, vehicles, and equipment 515 For tax purposes, depreciation is computed using the straight-line and accelerated methods. Property and equipment net consists of the following as of May 31 (in thousands): 2016 2015 Land $ 119 $ 119 Land improvements 23 23 Buildings and building improvements 39,759 40,718 Furniture, vehicles, and equipment 27,904 28,171 Total gross property and equipment 67,805 69,031 Less accumulated depreciation (36,532 ) (32,641 ) Total net property and equipment $ 31,273 $ 36,390 |
Condominium Inventory | Condominium inventory is stated at cost (including capitalized interest). Condominium construction costs are accumulated on a specific identification basis. Under the specific identification basis, cost of revenues includes all applicable land acquisition, land development and specific construction costs (including direct and indirect costs) of each condominium paid to third parties. Land acquisition, land development and condominium construction costs do not include employee related benefit costs. The specific construction and allocated land costs of each condominium, including models, are included in direct construction. Allocated land acquisition and development costs are estimated based on the total costs expected in a project. Direct construction also includes amounts paid through the closing date of the condominium for construction materials and contractor costs. Condominium inventory is recorded as a long term asset due to the normal operating cycle being greater than one year. |
Capitalized Course Development Costs | The University internally develops curriculum and electronic instructional materials for certain courses. The curriculum is primarily developed by employees and contractors. The curriculum is integral to the learning system. Customers do not acquire the curriculum or future rights to it. The Company capitalizes course development costs. Costs that qualify for capitalization are external direct costs, payroll, and payroll-related costs. Costs related to general and administrative functions are not capitalizable and are expensed as incurred. Capitalization ends at such time that the course and/or material is available for general use by faculty and students. After becoming available for general use, the costs are amortized on a course-by-course basis over a period of three to five years. After the amortization period commences, the cost of maintenance and support is expensed as incurred, because it does not provide future benefit. If it is determined that the curriculum will not be used, the capitalized curriculum costs are written off and expensed in the period of this determination. |
Impairment of Long-Lived Assets | Long-lived assets are reviewed for impairment when circumstances indicate the carrying value of an asset may not be recoverable. For assets that are to be held and used, an impairment loss is recognized when the estimated undiscounted cash flows associated with the asset or group of assets is less than their carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded as the difference between the carrying value and fair value. Fair values are determined based on quoted market values, discounted cash flows, or internal and external appraisals, as applicable. Assets to be held for sale are carried at the lower of carrying value or fair value, less cost to sell. During November 2015, the Company announced the closure of the Denver campus, effective February 29, 2016. In January 2016, the Company announced the closure of two additional campuses: Weldon Spring, Missouri and Tigard, Oregon, both effective March 1, 2016. Due to the closure of these three campuses, undepreciated leasehold improvements and other fixed assets of $85, $328 and $394, respectively, were fully written off during the year ended May 31, 2016. The write-down is included in loss on disposition of property, within the NAU segment, in the consolidated financial statements. The Company had no impairments in 2015 or 2014. |
Deferred Income Taxes | Deferred income taxes are provided using the asset and liability method whereby deferred tax assets and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. We recognize a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion, or all, of a deferred tax asset will not be realized. |
Non-Controlling Interest | The non-controlling interest presented on the consolidated statements of operations and comprehensive income represents the individual owners share of the Partnerships income or loss. The consolidated balance sheet amount Non-controlling interest represents the individual owners share of the Partnership obligations in excess of Partnership assets. The Company has determined the non-controlling owners have a legal obligation to fund such deficits and believes it is fully collectable at May 31, 2016. |
Leases | Leases in which the risk of ownership is retained by the lessor are classified as operating leases. Leases which substantially transfer all of the benefits and risks inherent in ownership to the lessee are classified as capital leases. Assets acquired under capital leases are depreciated on the same basis as owned property and equipment or the related lease term, whichever is shorter. Leasehold improvements are depreciated over the depreciable lives of the corresponding fixed asset or the related lease term, whichever is shorter. |
Rental Income | Rental income is primarily obtained from tenants of three apartment complexes under short-term operating leases. Tenants are required to pay rent on a monthly basis. Rent not paid by the end of the month is considered past due, while significant amounts paid in advance are included in deferred income on the consolidated balance sheets. If a tenant becomes 60 days past due, eviction procedures are started. |
Rental Expense | The University accounts for rent expense under its long-term operating leases using the straight-line method. Certain of the Universitys operating leases contain rent escalator provisions. Accordingly, a $5,432 and $6,047, deferred rent and tenant improvement liability at May 31, 2016 and 2015, respectively, is recorded in other long-term liabilities on the consolidated balance sheets. |
Advertising | The University follows the policy of expensing the cost of advertising as incurred. Advertising costs of $10,734, $9,807 and $12,077 for 2016, 2015 and 2014, respectively, are included in selling, general, and administrative expenses on the consolidated statements of operations and comprehensive income. |
Academic [Member] | |
Revenue | Academic revenue represents tuition revenue and the revenue generated through NAUs teaching relationships with other non-related party institutions. Tuition revenue and affiliate revenue is recorded ratably over the length of respective courses. Academic revenue also includes certain fees and charges assessed at the start of each term. The portion of tuition and registration fee payments received but not earned is recorded as deferred income and reflected as a current liability on the consolidated balance sheets, as such amount represents revenue that the Company expects to earn within the next year. Academic revenue is reported net of adjustments for refunds and scholarships. If a student withdraws prior to the completion of the academic term, the respective portion of tuition and registration fees that the Company already received and is not entitled to are refunded back to the students and the Department of Education. Refunds and scholarships are recorded during the respective terms. For students that have withdrawn from all classes during an academic term, the University estimates the expected receivable balance that is due from such students and records a provision to reduce academic revenue for that amount calculated based on historical collection trends and adjusted for known current factors. The amount is then recognized as academic revenue at the time the receivable is collected (e.g. cash basis). |
Auxiliary [Member] | |
Revenue | Auxiliary revenue represents revenues from the Universitys bookstore operations. Revenue is recognized as items are sold and is recorded net of any applicable sales tax. The Company does not have book inventory because the book operation is outsourced to a third party vendor. Since the Company has the discrete ability to set book prices and maintains inventory and credit risk, we utilize gross reporting of revenue and expenses. Books sales revenue is recorded as auxiliary revenue and the related costs are recorded as auxiliary expense. |
SUMMARY OF SIGNIFICANT ACCOUN29
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
May 31, 2016 | |
Accounting Policies [Abstract] | |
Investments | 2016 2015 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Fair Value Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Fair Value Certificate of Deposits $ 4,119 $ - $ (2 ) $ 4,117 $ 4,102 $ - $ - $ 4,102 |
Property Plant and Equipment Useful Life | Years Buildings and building improvements 1940 Land improvements 1020 Furniture, vehicles, and equipment 515 |
Components of Property, Plant and Equipment, Net | 2016 2015 Land $ 119 $ 119 Land improvements 23 23 Buildings and building improvements 39,759 40,718 Furniture, vehicles, and equipment 27,904 28,171 Total gross property and equipment 67,805 69,031 Less accumulated depreciation (36,532 ) (32,641 ) Total net property and equipment $ 31,273 $ 36,390 |
DEPARTMENT OF EDUCATION REQUI30
DEPARTMENT OF EDUCATION REQUIREMENTS (Tables) | 12 Months Ended |
May 31, 2016 | |
Text Block [Abstract] | |
Revenues Source | 2016 2015 2014 Title IV HEA funds received $ 90,238 $ 106,305 $ 107,333 Academic revenue $ 103,904 =86.85% $ 119,200 =89.18% $ 120,169 =89.32% (cash basis) |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
May 31, 2016 | |
Leases [Abstract] | |
Future Minimum Lease Payments on Non-cancelable Operating Leases | 2017 $ 6,028 2018 6,039 2019 5,769 2020 5,213 2021 4,139 Thereafter 9,376 |
Schedule of Future Minimum Commitments Under Revised Capital Lease Obligation | 2017 $ 1,137 2018 1,159 2019 1,183 2020 1,207 2021 1,231 Thereafter 14,370 Total future minimum lease obligation $ 20,287 Less: Imputed interest on capital leases (8,435 ) Net present value of lease obligations $ 11,852 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
May 31, 2016 | |
Equity [Abstract] | |
Summary of Restricted Shares Activity | Restricted Shares Shares Weighted Average Grant Date Fair Value Non-vested shares at May 31, 2014 608,170 $ 4.01 Granted 42,155 3.11 Vested (28,170 ) 3.55 Forfeited (580,000 ) 4.03 Non-vested shares at May 31, 2015 42,155 $ 3.11 Granted 40,485 2.47 Vested (42,155 ) 3.11 Forfeited 0 0 Non-vested shares at May 31, 2016 40,485 $ 2.47 |
Summary of Stock Options Issued | Assumptions used: 2016 2015 Expected term (in years) 5.75 5.50 Expected volatility 50.40 % 51.40 % Weighted average risk free interest rate 1.54 % 1.52 % Weighted average risk free interest rate range 1.54-1.54 % 1.52-1.52 % Weighted average expected dividend 5.92 5.79 % Weighted average expected dividend range 5.92-5.92 % 5.79-5.79 % Weighted average fair value $ 0.84 $ 0.88 |
Summary of Option Activity | Stock Options Shares Weighted average exercise price Weighted average remaining contractual life (in years) Aggregate intrinsic value Outstanding at May 31, 2014 75,750 $ 7.17 7.6 $ 0 Granted 12,500 3.11 Exercised 0 0 Forfeited or canceled (9,500 ) 8.70 Outstanding at May 31, 2015 78,750 $ 6.34 7.1 $ 0 Exercisable at May 31, 2015 66,250 $ 6.85 6.8 $ 0 Outstanding at May 31, 2015 78,750 $ 6.34 7.1 $ 0 Granted 148,475 3.06 Exercised 0 0 Forfeited or canceled (34,875) 4.67 Outstanding at May 31, 2016 192,350 $ 4.11 8.4 $ 0 Exercisable at May 31, 2016 192,350 $ 4.11 8.4 $ 0 |
Summary of Dividend Payments | Date declared Record date Payment date Per share April 7, 2014 June 30, 2014 July 11, 2014 $ 0.0450 August 11, 2014 September 30, 2014 October 10, 2014 $ 0.0450 October 6, 2014 December 31, 2014 January 16, 2015 $ 0.0450 January 24, 2015 March 31, 2015 April 17, 2015 $ 0.0450 April 13, 2015 June 30, 2015 July 10, 2015 $ 0.0450 August 10, 2015 September 30, 2015 October 9, 2015 $ 0.0450 October 5, 2015 December 31, 2015 January 15, 2016 $ 0.0450 January 23, 2016 March 31, 2016 April 8, 2016 $ 0.0450 April 4, 2016 June 30, 2016 July 8, 2016 $ 0.0450 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
May 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Components of Provision for Income Taxes | 2016 2015 2014 Current tax (benefit) expense: Federal $ (1,579 ) $ 5,216 $ 3,678 State 64 751 509 (1,515 ) 5,967 4,187 Deferred tax (benefit): Federal (1,183 ) (1,396 ) (1,740 ) State (196 ) (138 ) (141 ) (1,379 ) (1,534 ) (1,881 ) Total tax (benefit) expense $ (2,894 ) $ 4,433 $ 2,306 |
Summary of Effective Income Tax Rate | 2016 2015 2014 Statutory (34.0 )% 34.0 % 34.0 % State income taxes net of federal benefit (1.9 ) 3.6 4.2 Permanent differences and other 0.6 2.0 1.7 Effective income tax rate (35.3 )% 39.6 % 39.9 % |
Significant Components of Deferred Tax Assets and Liabilities | 2016 2015 Deferred income tax assets: Account receivable allowances $ 317 $ 616 Bad debt write-offs 2,131 1,544 Other 60 130 Accrued salaries 623 717 Start up costs 246 276 Capital lease obligations 4,445 4,536 Net operating loss carryforwards - expires 2021-2036 155 - Deferred rent 2,037 2,268 Total deferred income tax assets 10,014 10,087 Deferred income tax liabilities: Fixed assets and course development (9,133 ) (10,493 ) Prepaid expenses (450 ) (542 ) Total deferred income tax liabilities (9,583 ) (11,035 ) Net deferred income tax assets (liabilities) $ 431 $ (948 ) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
May 31, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerator and Denominator for Basic and Diluted EPS Computations | For the year ended May 31, 2016 2015 2014 Numerator: Net (loss) income attributable to National American University Holdings, Inc. $ (5,349 ) $ 6,718 $ 3,475 Denominator: Weighted average shares outstanding used to compute basic net income per common share 24,651,521 25,160,729 25,093,096 Incremental shares issuable upon the assumed exercise of stock options - - - Incremental shares issuable upon the assumed vesting of restricted shares - 5,003 1,265 Common shares used to compute diluted net income per share 24,651,521 25,165,732 25,094,361 Basic net (loss) income per common share (0.22 ) $ 0.27 $ 0.14 Diluted net (loss) income per common share $ (0.22 ) $ 0.27 $ 0.14 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
May 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis | Quoted prices in active markets (level 1) Other observable inputs (level 2) Unobservable inputs (level 3) Fair value May 31, 2016 Investments: Certificates of deposit $ 0 $ 4,117 $ 0 $ 4,117 Money market accounts included in cash equivalents 38 0 0 38 Total assets at fair value $ 38 $ 4,117 $ 0 $ 4,155 May 31, 2015 Investments: Certificates of deposit $ 244 $ 3,858 $ 0 $ 4,102 Money market accounts included in cash equivalents 269 0 0 269 Total assets at fair value $ 513 $ 3,858 $ 0 $ 4,371 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
May 31, 2016 | |
Segment Reporting [Abstract] | |
Financial Information of Reportable Segment | For the year ended May 31, For the year ended May 31, For the year ended May 31, 2016 2015 2014 Consolidated Consolidated Consolidated NAU Other Total NAU Other Total NAU Other Total Revenue: Academic $ 88,697 $ - $ 88,697 $ 108,360 $ - $ 108,360 $ 117,099 $ - $ 117,099 Auxiliary 6,306 - 6,306 7,920 - 7,920 9,076 - 9,076 Rental income apartments - 1,110 1,110 - 1,164 1,164 - 1,138 1,138 Condominium sales - - - - 447 447 - 440 440 Total revenue 95,003 1,110 96,113 116,280 1,611 117,891 126,175 1,578 127,753 Operating expenses: Cost of educational services 26,093 - 26,093 28,551 - 28,551 29,478 - 29,478 Selling, general & administrative 70,819 1,392 72,211 71,681 1,620 73,301 83,627 1,659 85,286 Auxiliary 4,667 - 4,667 5,629 - 5,629 6,236 - 6,236 Cost of condominium sales - - - - 368 368 - 386 386 Loss (gain) on disposition of property 810 (75) 735 114 (1,824) (1,710) 211 (97) 114 Total operating expenses 102,389 1,317 103,706 105,975 164 106,139 119,552 1,948 121,500 (Loss) income from operations (7,386) (207) (7,593) 10,305 1,447 11,752 6,623 (370) 6,253 Other income (expense): Interest inc 80 7 87 51 97 148 54 88 142 Interest exp (870) - (870) (883) (8) (891) (769) (1) (770) Other income (loss) - net - 178 178 - 178 178 - 149 149 Total other (expense) income (790) 185 (605) (832) 267 (565) (715) 236 (479) (Loss) income before taxes $ (8,176) $ (22) $ (8,198) $ 9,473 $ 1,714 $ 11,187 $ 5,908 $ (134) $ 5,774 As of and for the Year Ended As of and for the Year Ended As of and for the Year Ended May 31, 2016 May 31, 2015 May 31, 2014 Consolidated Consolidated Consolidated NAU Other Total NAU Other Total NAU Other Total Total assets $ 61,694 $ 9,022 $ 70,716 $ 78,042 $ 8,502 $ 86,544 $ 76,383 $ 12,074 $ 88,457 Expenditures for long-lived assets $ 710 $ 249 $ 959 $ 859 $ 452 $ 1,311 $ 3,094 $ 1,438 $ 4,532 Depreciation & amortization $ 5,058 $ 538 $ 5,596 $ 5,546 $ 581 $ 6,127 $ 5,765 $ 591 $ 6,356 |
SUMMARIZED QUARTERLY FINANCIA37
SUMMARIZED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
May 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Quarter First Second Third Fourth Fiscal Year Ended May 31, 2016 Revenues $ 24,649 $ 25,739 $ 22,678 $ 23,047 Operating loss (1,916 ) (1,358 ) (2,844 ) (1,475 ) Net loss (1,298 ) (1,170 ) (1,875 ) (961 ) Net loss attributable to NAUH and Subsidiaries (1,309 ) (1,178 ) (1,891 ) (970 ) Net loss per share (common): Basic (0.05 ) (0.05 ) (0.08 ) (0.04 ) Diluted (0.05 ) (0.05 ) (0.08 ) (0.04 ) Fiscal Year Ended May 31, 2015 Revenues Operating income $ 29,304 $ 30,638 $ 29,083 $ 28,866 Net income 3,536 4,698 2,581 937 Net income attributable to 2,168 2,840 1,478 268 NAUH and Subsidiaries Net income per share (common): 2,170 2,826 1,464 256 Basic 0.09 0.11 0.06 0.01 Diluted 0.09 0.11 0.06 0.01 |
STATEMENT PRESENTATION AND BA38
STATEMENT PRESENTATION AND BASIS OF CONSOLIDATION (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
May 31, 2016 | Feb. 29, 2016 | Nov. 30, 2015 | Aug. 31, 2015 | May 31, 2015 | Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||||||||||
Assets | $ 70,716 | $ 86,544 | $ 70,716 | $ 86,544 | $ 88,457 | ||||||
Net income (loss) | $ (970) | $ (1,891) | $ (1,178) | $ (1,309) | $ 256 | $ 1,464 | $ 2,826 | $ 2,170 | $ (5,348) | $ 6,716 | 3,485 |
Variable Interest Entity Primary Beneficiary [Member] | |||||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||||||||||
Percentage of partnership | 50.00% | 50.00% | 50.00% | 50.00% | |||||||
Assets | $ 611 | $ 685 | $ 611 | $ 685 | |||||||
Liabilities | $ 91 | $ 94 | 91 | 94 | |||||||
Net income (loss) | $ 88 | $ 75 | $ (34) |
NATURE OF OPERATIONS (Details N
NATURE OF OPERATIONS (Details Narrative) | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Sales Revenue Net [Member] | Nau [Member] | |||
Nature Of Operations [Line Items] | |||
Total revenues that were derived from NAU's academic revenue | 92.00% | 92.00% | 92.00% |
SUMMARY OF SIGNIFICANT ACCOUN40
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | May 31, 2016 | May 31, 2015 |
Available For Sale Investments [Line Items] | ||
Amortized Cost | $ 4,119 | $ 4,102 |
Gross Unrealized Holding Gains | 0 | 0 |
Gross Unrealized Holding Losses | (2) | 0 |
Fair Value | 4,117 | 4,102 |
Certificates Of Deposit [Member] | ||
Available For Sale Investments [Line Items] | ||
Amortized Cost | 4,119 | 4,102 |
Gross Unrealized Holding Gains | 0 | 0 |
Gross Unrealized Holding Losses | (2) | 0 |
Fair Value | $ 4,117 | $ 4,102 |
SUMMARY OF SIGNIFICANT ACCOUN41
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 12 Months Ended |
May 31, 2016 | |
Building And Building Improvements [Member] | Minimum [Member] | |
Property Plant And Equipment Estimated Useful Life [Line Items] | |
Property plant and equipment useful life | 19 years |
Building And Building Improvements [Member] | Maximum [Member] | |
Property Plant And Equipment Estimated Useful Life [Line Items] | |
Property plant and equipment useful life | 40 years |
Land Improvements [Member] | Minimum [Member] | |
Property Plant And Equipment Estimated Useful Life [Line Items] | |
Property plant and equipment useful life | 10 years |
Land Improvements [Member] | Maximum [Member] | |
Property Plant And Equipment Estimated Useful Life [Line Items] | |
Property plant and equipment useful life | 20 years |
Furniture Vehicles And Equipment [Member] | Minimum [Member] | |
Property Plant And Equipment Estimated Useful Life [Line Items] | |
Property plant and equipment useful life | 5 years |
Furniture Vehicles And Equipment [Member] | Maximum [Member] | |
Property Plant And Equipment Estimated Useful Life [Line Items] | |
Property plant and equipment useful life | 15 years |
SUMMARY OF SIGNIFICANT ACCOUN42
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($) $ in Thousands | May 31, 2016 | May 31, 2015 |
Property and equipment - net | ||
Land | $ 119 | $ 119 |
Land improvements | 23 | 23 |
Buildings and building improvements | 39,759 | 40,718 |
Furniture, vehicles, and equipment | 27,904 | 28,171 |
Total gross property and equipment | 67,805 | 69,031 |
Less accumulated depreciation | (36,532) | (32,641) |
Total net property and equipment | $ 31,273 | $ 36,390 |
SUMMARY OF SIGNIFICANT ACCOUN43
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Basis Of Presentation [Line Items] | |||
Proceeds from sale of available for sale investments | $ 3,881 | $ 61,478 | $ 42,277 |
Depreciation expense | 5,596 | 6,127 | 6,356 |
Impairment of long lived-assets | 85 | 328 | 394 |
Deferred rent and tenant improvement liability | 5,432 | 6,047 | |
Advertising cost | 10,734 | 9,807 | 12,077 |
Amortization related to development cost | 291 | 339 | 354 |
Capital Lease Obligations [Member] | |||
Basis Of Presentation [Line Items] | |||
Depreciation expense | $ 530 | $ 530 | $ 530 |
DEPARTMENT OF EDUCATION REQUI44
DEPARTMENT OF EDUCATION REQUIREMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Regulatory Requirements [Line Items] | |||
Academic revenue | $ 88,697 | $ 108,360 | $ 117,099 |
Percentage of revenue collected from funds under title IV programs | 86.85% | 89.18% | 89.32% |
Cash Basis Method [Member] | |||
Regulatory Requirements [Line Items] | |||
Academic revenue | $ 103,904 | $ 119,200 | $ 120,169 |
United States Department Of Education Student Financial Aid Under Title I V Programs [Member] | |||
Regulatory Requirements [Line Items] | |||
Title IV HEA funds received | $ 90,238 | $ 106,305 | $ 107,333 |
DEPARTMENT OF EDUCATION REQUI45
DEPARTMENT OF EDUCATION REQUIREMENTS (Details Narrative) - Point | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Regulatory Requirements [Line Items] | |||
Minimum revenues percentage under 34 CFR 600.5(d) | 10.00% | 10.00% | 10.00% |
Minimum composite score | (1) | (1) | (1) |
Maximum composite score | 3 | 3 | 3 |
Composite score | 1.8 | 3 | 2.3 |
Title IV Eligibility Description | An educational institution loses eligibility to participate in Title IV programs if its cohort default rate equals or exceeds 40% for any given year or 30% for three consecutive years. | ||
Federal Fiscal Year 2012 [Member] | |||
Regulatory Requirements [Line Items] | |||
Cohort default rates | .208 | ||
Federal Fiscal Year 2011 [Member] | |||
Regulatory Requirements [Line Items] | |||
Cohort default rates | .214 | ||
Federal Fiscal Year 2013 [Member] | |||
Regulatory Requirements [Line Items] | |||
Draft Cohort Default Rate | 0.237 |
CONTRACT FOR DEED (Details Narr
CONTRACT FOR DEED (Details Narrative) - USD ($) $ in Thousands | Jul. 11, 2014 | Mar. 28, 2013 | May 31, 2016 | May 31, 2015 | May 31, 2014 |
Real Estate Properties [Line Items] | |||||
Loss (gain) on disposition of property | $ 735 | $ (1,710) | $ 114 | ||
Former Rapid City Campus | |||||
Real Estate Properties [Line Items] | |||||
Property, sales price | $ 4,000 | ||||
Loss (gain) on disposition of property | $ (1,743) | ||||
Sale lease back monthly rental payment | 59 | ||||
Principal on contract | 3,230 | ||||
Interest on contract | $ 85 |
LINES OF CREDIT (Details Narrat
LINES OF CREDIT (Details Narrative) - Unsecured Revolving Line Of Credit [Member] $ in Thousands | 12 Months Ended |
May 31, 2016USD ($) | |
Line of Credit Facility [Line Items] | |
Line of credit maximum borrowing capacity | $ 3,000 |
Line of credit maturity date | May 31, 2016 |
Prime interest rate on line of credit | 3.50% |
LEASES (Details)
LEASES (Details) $ in Thousands | May 31, 2016USD ($) |
Leases [Abstract] | |
2,017 | $ 6,028 |
2,018 | 6,039 |
2,019 | 5,769 |
2,020 | 5,213 |
2,021 | 4,139 |
Thereafter | $ 9,376 |
LEASES (Details 1)
LEASES (Details 1) - USD ($) $ in Thousands | May 31, 2016 | May 31, 2015 |
Leases [Abstract] | ||
2,017 | $ 1,137 | |
2,018 | 1,159 | |
2,019 | 1,183 | |
2,020 | 1,207 | |
2,021 | 1,231 | |
Thereafter | 14,370 | |
Total future minimum lease obligation | 20,287 | $ 21,403 |
Less: Imputed interest on capital leases | (8,435) | |
Net present value of lease obligations | $ 11,852 | $ 12,097 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Lease Liability [Line Items] | |||
Operating lease rent expense | $ 5,737 | $ 6,037 | $ 6,025 |
Capital lease additions | 2,000 | ||
Notes receivable increase/decrease | (1,373) | 2,000 | |
Notes receivable per month | $ 14 | ||
Notes receivable interest rate percentage | 6.00% | ||
Future payments due under capital lease obligation | 20,287 | 21,403 | |
Net present value of capital lease obligation | 11,852 | 12,097 | |
Capital lease payable, current | 285 | 244 | |
Capital lease payable, non-current | 11,567 | 11,853 | |
Capital lease assets | 10,600 | 10,600 | |
Capital lease assets, accumulated depreciation | $ 2,429 | $ 1,899 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - Restricted Stock and RSUs [Member] - $ / shares | 12 Months Ended | |
May 31, 2016 | May 31, 2015 | |
Restricted Shares and RSU's | ||
Shares, non-vested shares, beginning balance | 42,155 | 608,170 |
Shares, granted | 40,845 | 42,155 |
Shares, vested | (42,155) | (28,170) |
Shares, forfeited | 0 | (580,000) |
Shares, non-vested shares, ending balance | 40,485 | 42,155 |
Weighted average grant date fair value | ||
Weighted average grant date fair value, non-vested shares, beginning balance | $ 3.11 | $ 4.01 |
Weighted average grant date fair value, granted | 2.47 | 3.11 |
Weighted average grant date fair value, vested | 3.11 | 3.55 |
Weighted average grant date fair value,forfeited | 0 | 4.03 |
Weighted average grant date fair value, Non-vested shares, Ending balance | $ 2.47 | $ 3.11 |
STOCKHOLDERS' EQUITY (Details 1
STOCKHOLDERS' EQUITY (Details 1) - $ / shares | 12 Months Ended | |
May 31, 2016 | May 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Expected term (in years) | 5 years 9 months | 5 years 6 months |
Expected volatility | 50.40% | 51.40% |
Weighted average risk free interest rate | 1.54% | 1.52% |
Weighted average risk free interest rate range, minimum | 1.54% | 1.52% |
Weighted average risk free interest rate range, maximum | 1.54% | 1.52% |
Weighted average expected dividend | 5.92% | 5.79% |
Weighted average expected dividend range, minimum | 5.92% | 5.79% |
Weighted average expected dividend range, maximum | 5.92% | 5.79% |
Weighted average fair value | $ 0.84 | $ 0.88 |
STOCKHOLDERS' EQUITY (Details 2
STOCKHOLDERS' EQUITY (Details 2) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Shares | |||
Outstanding Shares, Beginning Balance | 78,750 | 75,750 | |
Shares, Granted | 148,475 | 12,500 | |
Shares, Exercised | 0 | 0 | |
Shares, Forfeited or canceled | (34,875) | (9,500) | |
Outstanding Shares, Ending Balance | 192,350 | 78,750 | 75,750 |
Exercisable Shares, At The End of Period | 192,350 | 66,250 | |
Weighted Average Exercise Price | |||
Weighted Average Exercise Price, Beginning balance | $ 6.34 | $ 7.17 | |
Weighted Average Exercise Price, Granted | 3.06 | 3.11 | |
Weighted Average Exercise Price, Exercised | 0 | ||
Weighted Average Exercise Price, Forfeited or canceled | 4.67 | 8.70 | |
Weighted Average Exercise Price, Ending balance | 4.11 | 6.34 | $ 7.17 |
Weighted Average Exercise Price, Ending balance exercisable | $ 4.11 | $ 6.85 | |
Weighted Average Remaining Contractual Life (in years) | |||
Weighted Average Remaining Contractual Life (in years), Outstanding | 8 years 4 months 24 days | 7 years 1 month 6 days | 7 years 7 months 6 days |
Weighted Average Remaining Contractual Life (in years), Exercisable | 8 years 4 months 24 days | 6 years 9 months 18 days | |
Aggregate Intrinsic Value | |||
Aggregate Intrinsic Value, Ending Balance | $ 0 | $ 0 | |
Aggregate Intrinsic Value, Exercisable at the end of Period | $ 0 | $ 0 |
STOCKHOLDERS' EQUITY (Details 3
STOCKHOLDERS' EQUITY (Details 3) | 12 Months Ended |
May 31, 2016$ / shares | |
Period One [Member] | |
Dividends Payable [Line Items] | |
Date declared | Apr. 7, 2014 |
Record date | Jun. 30, 2014 |
Payment date | Jul. 11, 2014 |
Per share | $ 0.0450 |
Period Two [Member] | |
Dividends Payable [Line Items] | |
Date declared | Aug. 11, 2014 |
Record date | Sep. 30, 2014 |
Payment date | Oct. 10, 2014 |
Per share | $ 0.0450 |
Period Three [Member] | |
Dividends Payable [Line Items] | |
Date declared | Oct. 6, 2014 |
Record date | Dec. 31, 2014 |
Payment date | Jan. 16, 2015 |
Per share | $ 0.0450 |
Period Four [Member] | |
Dividends Payable [Line Items] | |
Date declared | Jan. 24, 2015 |
Record date | Mar. 31, 2015 |
Payment date | Apr. 17, 2015 |
Per share | $ 0.0450 |
Period Five [Member] | |
Dividends Payable [Line Items] | |
Date declared | Apr. 13, 2015 |
Record date | Jun. 30, 2015 |
Payment date | Jul. 10, 2015 |
Per share | $ 0.0450 |
Period Six [Member] | |
Dividends Payable [Line Items] | |
Date declared | Aug. 10, 2015 |
Record date | Sep. 30, 2015 |
Payment date | Oct. 9, 2015 |
Per share | $ 0.0450 |
Period Seven [Member] | |
Dividends Payable [Line Items] | |
Date declared | Oct. 5, 2015 |
Record date | Dec. 31, 2015 |
Payment date | Jan. 15, 2016 |
Per share | $ 0.0450 |
Period Eight [Member] | |
Dividends Payable [Line Items] | |
Date declared | Jan. 23, 2016 |
Record date | Mar. 31, 2016 |
Payment date | Apr. 8, 2016 |
Per share | $ 0.0450 |
Period Nine [Member] | |
Dividends Payable [Line Items] | |
Date declared | Apr. 4, 2016 |
Record date | Jun. 30, 2016 |
Payment date | Jul. 8, 2016 |
Per share | $ 0.0450 |
STOCKHOLDERS' EQUITY (Details N
STOCKHOLDERS' EQUITY (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Common stock, shares outstanding | 24,140,972 | 25,191,414 | |
Treasury shares resulting from settlement of stock based compensation | $ 65 | $ 32 | $ 64 |
Restricted stock units compensation expense | 0 | (1,170) | 1,170 |
Compensation expenses restricted stock award | $ 116 | $ 122 | $ 82 |
Unamortized compensation cost of restricted stock and restricted stock unit awards | $ 35 | ||
Unamortized compensation cost weighted average period | 4 months 24 days | ||
Compensation expense of stock options | $ 121 | 27 | 22 |
Unrestricted stock compensation expense | $ 320 | $ 166 | $ 261 |
Common Stock Authorized | 50,000,000 | 50,000,000 | |
Common Stock Par Value | $ 0.0001 | $ 0.0001 | |
Preferred Stock Authorized | 1,000,000 | 1,000,000 | |
Preferred Stock Par Value | $ 0.0001 | $ 0.0001 | |
Stock Repurchased, Shares | 353,581 | ||
Stock Repurchased, Value | $ 868 | ||
Common Class A [Member] | |||
Common Stock Authorized | 100,000 | 100,000 | |
Common Stock Par Value | $ 0.0001 | $ 0.0001 | |
Single Shareholder | |||
Stock Repurchased, Shares | 853,073 | ||
Stock Repurchased, Value | $ 2,039 | ||
Stock Repurchase Plan | |||
Stock Repurchased, Shares | 30,440 | ||
Stock Repurchased, Value | $ 50 | ||
Maximum Shares Repurchase authorized | $ 500 | ||
Maximum price per share authorized | $ 1.75 | ||
2013 Plan [Member] | |||
Common stock remain available for issuance | 750,000 | ||
Restricted stock units cancelled | 580,000 | ||
Restricted stock units compensation expense reversed | $ 1,170 | ||
2009 Stock Option and Compensation Plan [Member] | |||
Shares authorized for issuance | 1,300,000 | ||
Common stock remain available for issuance | 431,397 |
EMPLOYEE COMPENSATION PLANS (De
EMPLOYEE COMPENSATION PLANS (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Employer discretionary contribution amount | $ 514 | $ 0 | $ 735 |
Employer contribution matching percentage | 5.00% | 5.00% | |
Incentive expense | $ 0 | $ 390 | $ 197 |
Accrued contribution employer amount | 49 | $ 708 | |
Reversal of accrued match due to change in estimate | 194 | ||
Chief Executive Officer And President [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Incentive expense | $ 100 |
SELF-INSURED HEALTH INSURANCE (
SELF-INSURED HEALTH INSURANCE (Details Narrative) - USD ($) $ in Thousands | May 31, 2016 | May 31, 2015 |
Self-insured Health Insurance Details Narrative | ||
Claims outstanding | $ 381 | $ 340 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Current tax (benefit) expense: | |||
Federal | $ (1,579) | $ 5,216 | $ 3,678 |
State | 64 | 751 | 509 |
Total current tax (benefit) expense | (1,515) | 5,967 | 4,187 |
Deferred tax (benefit) expense: | |||
Federal | (1,183) | (1,396) | (1,740) |
State | (196) | (138) | (141) |
Total deferred tax (benefit) expense | (1,379) | (1,534) | (1,881) |
Total tax (benefit) expense | $ (2,894) | $ 4,433 | $ 2,306 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Statutory | (34.00%) | 34.00% | 34.00% |
State income taxes - net of federal benefit | (1.90%) | 3.60% | 4.20% |
Permanent differences and other | 0.60% | 2.00% | 1.70% |
Effective income tax rate | (35.30%) | 39.60% | 39.90% |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) $ in Thousands | 6 Months Ended | |
May 31, 2016 | May 31, 2015 | |
Deferred income tax assets: | ||
Account receivable allowances | $ 317 | $ 616 |
Bad debt write-offs | 2,131 | 1,544 |
Other | 60 | 130 |
Accrued salaries | 623 | 717 |
Start up costs | 246 | 276 |
Capital lease obligations | 4,445 | 4,536 |
Net operating loss carryforwards | $ 155 | $ 0 |
Net operating loss carryforward expiration | 2021-2036 | 2021-2036 |
Deferred rent | $ 2,037 | $ 2,268 |
Total deferred income tax assets | 10,014 | 10,087 |
Deferred income tax liabilities: | ||
Fixed assets and course development | (9,133) | (10,493) |
Prepaid expenses | (450) | (542) |
Total deferred income tax liabilities | (9,583) | (11,035) |
Net deferred income tax assets (liabilities) | $ 431 | $ (948) |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
May 31, 2016 | Feb. 29, 2016 | Nov. 30, 2015 | Aug. 31, 2015 | May 31, 2015 | Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Numerator: | |||||||||||
Net Income attributable to National American University Holdings, Inc. | $ (970) | $ (1,891) | $ (1,178) | $ (1,309) | $ 256 | $ 1,464 | $ 2,826 | $ 2,170 | $ (5,348) | $ 6,716 | $ 3,485 |
Denominator: | |||||||||||
Weighted average shares outstanding used to compute basic net income per common share | 24,651,521 | 25,160,729 | 25,093,096 | ||||||||
Incremental shares issuable upon the assumed vesting of stock options | |||||||||||
Incremental shares issuable upon the assumed vesting of restricted shares | 0 | 5,003 | 1,265 | ||||||||
Common shares used to compute diluted net income per share | 24,651,521 | 25,165,732 | 25,094,361 | ||||||||
Basic net income per common share | $ (0.04) | $ (0.08) | $ (0.05) | $ (0.05) | $ 0.01 | $ 0.06 | $ 0.11 | $ 0.09 | $ (0.22) | $ 0.27 | $ 0.14 |
Diluted net income per common share | $ (0.04) | $ (0.08) | $ (0.05) | $ (0.05) | $ 0.01 | $ 0.06 | $ 0.11 | $ 0.09 | $ (0.22) | $ 0.27 | $ 0.14 |
EARNINGS PER SHARE (Details Nar
EARNINGS PER SHARE (Details Narrative) - shares | 12 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Stock Option [Member] | |||
Computation Of Earnings Per Share [Line Items] | |||
Number of shares excluded from calculation of diluted EPS | 192,350 | 78,750 | 75,750 |
Restricted Stock [Member] | |||
Computation Of Earnings Per Share [Line Items] | |||
Number of shares excluded from calculation of diluted EPS | 7,446 | ||
Restricted shares outstanding | 82,640 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Fair Value Measurements Recurring [Member] - USD ($) $ in Thousands | May 31, 2016 | May 31, 2015 |
Investments | ||
Total assets at fair value | $ 4,155 | $ 4,371 |
Cash Equivalents [Member] | ||
Investments | ||
Total assets at fair value | 38 | 269 |
Certificates of Deposit [Member] | ||
Investments | ||
Total assets at fair value | 4,117 | 4,102 |
Fair Value Inputs Level 1 [Member] | ||
Investments | ||
Total assets at fair value | 38 | 513 |
Fair Value Inputs Level 1 [Member] | Cash Equivalents [Member] | ||
Investments | ||
Total assets at fair value | 38 | 269 |
Fair Value Inputs Level 1 [Member] | Certificates of Deposit [Member] | ||
Investments | ||
Total assets at fair value | 0 | 244 |
Fair Value Inputs Level 2 [Member] | ||
Investments | ||
Total assets at fair value | 4,117 | 3,858 |
Fair Value Inputs Level 2 [Member] | Cash Equivalents [Member] | ||
Investments | ||
Total assets at fair value | 0 | |
Fair Value Inputs Level 2 [Member] | Certificates of Deposit [Member] | ||
Investments | ||
Total assets at fair value | 4,117 | $ 3,858 |
Fair Value, Inputs, Level 3 [Member] | ||
Investments | ||
Total assets at fair value | 0 | |
Fair Value, Inputs, Level 3 [Member] | Cash Equivalents [Member] | ||
Investments | ||
Total assets at fair value | 0 | |
Fair Value, Inputs, Level 3 [Member] | Certificates of Deposit [Member] | ||
Investments | ||
Total assets at fair value | $ 0 |
FAIR VALUE MEASUREMENTS (Deta64
FAIR VALUE MEASUREMENTS (Details Narrative) - USD ($) $ in Thousands | May 31, 2016 | May 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Estimated fair value of capital lease obligations | $ 11,852 | $ 12,097 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
May 31, 2016 | Feb. 29, 2016 | Nov. 30, 2015 | Aug. 31, 2015 | May 31, 2015 | Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Revenue: | |||||||||||
Academic | $ 88,697 | $ 108,360 | $ 117,099 | ||||||||
Auxiliary | 6,306 | 7,920 | 9,076 | ||||||||
Rental income apartments | 1,110 | 1,164 | 1,138 | ||||||||
Condominium sales | 0 | 447 | 440 | ||||||||
Total revenue | $ 23,047 | $ 22,678 | $ 25,739 | $ 24,649 | $ 28,866 | $ 29,083 | $ 30,638 | $ 29,304 | 96,113 | 117,891 | 127,753 |
Operating expenses: | |||||||||||
Cost of educational services | 26,093 | 28,551 | 29,478 | ||||||||
Selling, general & administrative | 72,211 | 73,301 | 85,286 | ||||||||
Auxiliary | 4,667 | 5,629 | 6,236 | ||||||||
Cost of condominium sales | 0 | 368 | 386 | ||||||||
Loss (gain) on disposition of property | 735 | (1,710) | 114 | ||||||||
Total operating expenses | 103,706 | 106,139 | 121,500 | ||||||||
Income (loss) from operations | (1,475) | $ (2,844) | $ (1,358) | $ (1,916) | 937 | $ 2,581 | $ 4,698 | $ 3,536 | (7,593) | 11,752 | 6,253 |
Other income (expense): | |||||||||||
Interest inc | 87 | 148 | 142 | ||||||||
Interest exp | (870) | (891) | (770) | ||||||||
Other income (loss) - net | 178 | 178 | 149 | ||||||||
Total other (expense) income | (605) | (565) | (479) | ||||||||
(Loss) income before taxes | (8,198) | 11,187 | 5,774 | ||||||||
Total assets | 70,716 | 86,544 | 70,716 | 86,544 | 88,457 | ||||||
Expenditures for for long-lived assets | 959 | 1,311 | 4,532 | ||||||||
Depreciation & amortization | 5,596 | 6,127 | 6,356 | ||||||||
Nau [Member] | |||||||||||
Revenue: | |||||||||||
Academic | 88,697 | 108,360 | 117,099 | ||||||||
Auxiliary | 6,306 | 7,920 | 9,076 | ||||||||
Rental income apartments | 0 | 0 | 0 | ||||||||
Condominium sales | 0 | 0 | 0 | ||||||||
Total revenue | 95,003 | 116,280 | 126,175 | ||||||||
Operating expenses: | |||||||||||
Cost of educational services | 26,093 | 28,551 | 29,478 | ||||||||
Selling, general & administrative | 70,819 | 71,681 | 83,627 | ||||||||
Auxiliary | 4,667 | 5,629 | 6,236 | ||||||||
Cost of condominium sales | 0 | 0 | 0 | ||||||||
Loss (gain) on disposition of property | 810 | 114 | 211 | ||||||||
Total operating expenses | 102,389 | 105,975 | 119,552 | ||||||||
Income (loss) from operations | (7,386) | 10,305 | 6,623 | ||||||||
Other income (expense): | |||||||||||
Interest inc | 80 | 51 | 54 | ||||||||
Interest exp | (870) | (883) | (769) | ||||||||
Other income (loss) - net | 0 | 0 | 0 | ||||||||
Total other (expense) income | (790) | (832) | (715) | ||||||||
(Loss) income before taxes | (8,176) | 9,473 | 5,908 | ||||||||
Total assets | 61,694 | 78,042 | 61,694 | 78,042 | 76,383 | ||||||
Expenditures for for long-lived assets | 710 | 859 | 3,094 | ||||||||
Depreciation & amortization | 5,058 | 5,546 | 5,765 | ||||||||
Other [Member] | |||||||||||
Revenue: | |||||||||||
Academic | 0 | 0 | 0 | ||||||||
Auxiliary | 0 | 0 | 0 | ||||||||
Rental income apartments | 1,110 | 1,164 | 1,138 | ||||||||
Condominium sales | 0 | 447 | 440 | ||||||||
Total revenue | 1,110 | 1,611 | 1,578 | ||||||||
Operating expenses: | |||||||||||
Cost of educational services | 0 | 0 | 0 | ||||||||
Selling, general & administrative | 1,392 | 1,620 | 1,659 | ||||||||
Auxiliary | 0 | 0 | 0 | ||||||||
Cost of condominium sales | 0 | 368 | 386 | ||||||||
Loss (gain) on disposition of property | (75) | (1,824) | (97) | ||||||||
Total operating expenses | 1,317 | 164 | 1,948 | ||||||||
Income (loss) from operations | (207) | 1,447 | (370) | ||||||||
Other income (expense): | |||||||||||
Interest inc | 7 | 97 | 88 | ||||||||
Interest exp | 0 | (8) | (1) | ||||||||
Other income (loss) - net | 178 | 178 | 149 | ||||||||
Total other (expense) income | 185 | 267 | 236 | ||||||||
(Loss) income before taxes | (22) | 1,714 | (134) | ||||||||
Total assets | $ 9,022 | $ 8,502 | 9,022 | 8,502 | 12,074 | ||||||
Expenditures for for long-lived assets | 249 | 452 | 1,438 | ||||||||
Depreciation & amortization | $ 538 | $ 581 | $ 591 |
SUMMARIZED QUARTERLY FINANCIA66
SUMMARIZED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
May 31, 2016 | Feb. 29, 2016 | Nov. 30, 2015 | Aug. 31, 2015 | May 31, 2015 | Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 23,047 | $ 22,678 | $ 25,739 | $ 24,649 | $ 28,866 | $ 29,083 | $ 30,638 | $ 29,304 | $ 96,113 | $ 117,891 | $ 127,753 |
Operating (loss) income | (1,475) | (2,844) | (1,358) | (1,916) | 937 | 2,581 | 4,698 | 3,536 | (7,593) | 11,752 | 6,253 |
Net (loss) income | (961) | (1,875) | (1,170) | (1,298) | 268 | 1,478 | 2,840 | 2,168 | (5,304) | 6,754 | 3,468 |
Net (loss) income attributable to NAUH and Subsidiaries | $ (970) | $ (1,891) | $ (1,178) | $ (1,309) | $ 256 | $ 1,464 | $ 2,826 | $ 2,170 | $ (5,348) | $ 6,716 | $ 3,485 |
Net (loss) income per share (common): | |||||||||||
Basic | $ (0.04) | $ (0.08) | $ (0.05) | $ (0.05) | $ 0.01 | $ 0.06 | $ 0.11 | $ 0.09 | $ (0.22) | $ 0.27 | $ 0.14 |
Diluted | $ (0.04) | $ (0.08) | $ (0.05) | $ (0.05) | $ 0.01 | $ 0.06 | $ 0.11 | $ 0.09 | $ (0.22) | $ 0.27 | $ 0.14 |