Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2017 | Jul. 31, 2017 | Nov. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | May 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
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 | 24,227,376 | ||
Entity Public Float | $ 19,700,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | May 31, 2017 | May 31, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 11,974 | $ 21,713 |
Available for sale investments | 4,183 | 4,117 |
Student receivables — net of allowance of $1,195 and $723 at May 31, 2017 and May 31, 2016, respectively | 2,895 | 3,011 |
Other receivables | 458 | 375 |
Income taxes receivable | 2,301 | 2,780 |
Prepaid and other current assets | 1,649 | 2,078 |
Total current assets | 23,460 | 34,074 |
Total property and equipment - net | 31,318 | 31,273 |
OTHER ASSETS: | ||
Condominium inventory | 621 | 621 |
Land held for future development | 229 | 312 |
Course development — net of accumulated amortization of $3,322 and $3,051 at May 31, 2017 and May 31, 2016, respectively | 1,111 | 817 |
Deferred income taxes | 0 | 431 |
Other | 853 | 998 |
Total other assets | 2,814 | 3,179 |
TOTAL | 57,592 | 68,526 |
CURRENT LIABILITIES: | ||
Current portion of capital lease payable | 331 | 285 |
Accounts payable | 3,076 | 2,913 |
Dividends payable | 1,094 | 1,090 |
Income taxes payable | 113 | 110 |
Deferred income | 1,691 | 1,649 |
Accrued and other liabilities | 5,906 | 5,861 |
Total current liabilities | 12,211 | 11,908 |
DEFERRED INCOME TAXES | 194 | 0 |
OTHER LONG-TERM LIABILITIES | 4,010 | 4,686 |
CAPITAL LEASE PAYABLE, NET OF CURRENT PORTION | 11,237 | 11,567 |
COMMITMENTS AND CONTINGENCIES (Note 16) | ||
STOCKHOLDERS' EQUITY: | ||
Common stock, $0.0001 par value (50,000,000 authorized; 28,557,968 issued and 24,224,924 outstanding as of May 31, 2017; 28,472,129 issued and 24,140,972 outstanding as of May 31, 2016) | 3 | 3 |
Additional paid-in capital | 59,060 | 58,893 |
(Accumulated deficit) Retained earnings | (6,622) | 4,012 |
Treasury stock, at cost (4,333,044 shares at May 31, 2017 and 4,331,157 shares at May 31, 2016) | (22,481) | (22,477) |
Accumulated other comprehensive loss, net of taxes - unrealized loss on available for sale securities | (4) | (2) |
Total National American University Holdings, Inc. stockholders' equity | 29,956 | 40,429 |
Non-controlling interest | (16) | (64) |
Total stockholders' equity | 29,940 | 40,365 |
TOTAL | $ 57,592 | $ 68,526 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | May 31, 2017 | May 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for student receivables | $ 1,195 | $ 723 |
Accumulated amortization of course development | $ 3,322 | $ 3,051 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 28,557,968 | 28,472,129 |
Common stock, shares outstanding | 24,224,924 | 24,140,972 |
Treasury stock, shares | 4,333,044 | 4,331,157 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
REVENUE: | |||
Academic revenue | $ 80,595 | $ 88,697 | $ 108,360 |
Auxiliary revenue | 4,832 | 6,306 | 7,920 |
Rental income - apartments | 1,160 | 1,110 | 1,164 |
Condominium sales | 0 | 0 | 447 |
Total revenue | 86,587 | 96,113 | 117,891 |
OPERATING EXPENSES: | |||
Cost of educational services | 27,657 | 26,093 | 28,551 |
Selling, general and administrative | 61,639 | 72,211 | 73,301 |
Auxiliary expense | 3,477 | 4,667 | 5,629 |
Cost of condominium sales | 0 | 0 | 368 |
Loss (gain) on disposition of property | 1,052 | 735 | (1,710) |
Total operating expenses | 93,825 | 103,706 | 106,139 |
OPERATING (LOSS) INCOME | (7,238) | (7,593) | 11,752 |
OTHER INCOME (EXPENSE): | |||
Interest income | 102 | 87 | 148 |
Interest expense | (850) | (870) | (891) |
Other income - net | 209 | 178 | 178 |
Total other expense | (539) | (605) | (565) |
(LOSS) INCOME BEFORE INCOME TAXES | (7,777) | (8,198) | 11,187 |
INCOME TAX BENEFIT (EXPENSE) | 1,550 | 2,894 | (4,433) |
NET (LOSS) INCOME | (6,227) | (5,304) | 6,754 |
NET (INCOME) ATTRIBUTABLE TO NON-CONTROLLING INTEREST | (48) | (44) | (38) |
NET (LOSS) INCOME ATTRIBUTABLE TO NATIONAL AMERICAN UNIVERSITY HOLDINGS, INC. AND SUBSIDIARIES | (6,275) | (5,348) | 6,716 |
OTHER COMPREHENSIVE (LOSS) INCOME, NET OF TAX | |||
Unrealized (losses) gains on investments, net of tax benefit (expense) of $2, $1, and $(2) for 2017, 2016 and 2015, respectively | (2) | (1) | 2 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO NATIONAL AMERICAN UNIVERSITY HOLDINGS, INC. | $ (6,277) | $ (5,349) | $ 6,718 |
Basic net (loss) earnings per share attributable to National American University Holdings, Inc. | $ (0.26) | $ (0.22) | $ 0.27 |
Diluted net (loss) earnings per share attributable to National American University Holdings, Inc. | $ (0.26) | $ (0.22) | $ 0.27 |
Basic weighted average shares outstanding | 24,154,541 | 24,651,521 | 25,160,729 |
Diluted weighted average shares outstanding | 24,154,541 | 24,651,521 | 25,165,732 |
CONSOLIDATED STATEMENTS OF INC5
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Income Statement [Abstract] | |||
Unrealized (losses) gains on investments, tax | $ 2 | $ 1 | $ (2) |
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 loss | Non-controlling interest | Total |
Balance at May. 31, 2014 | $ 3 | $ 59,191 | $ 11,573 | $ (19,423) | $ (3) | $ (146) | $ 51,195 |
Purchase of shares common stock for the treasury | (32) | (32) | |||||
Share based compensation expense | (855) | (855) | |||||
Dividends declared ($0.045 per share) | (4,538) | (4,538) | |||||
Net (loss) income | 6,716 | 38 | 6,754 | ||||
Other comprehensive income (loss), net of tax | 2 | 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) | 44 | (5,304) | ||||
Other comprehensive income (loss), net of tax | (1) | (1) | |||||
Balance at May. 31, 2016 | 3 | 58,893 | 4,012 | (22,477) | (2) | (64) | 40,365 |
Purchase of shares common stock for the treasury | (4) | (4) | |||||
Share based compensation expense | 167 | 167 | |||||
Dividends declared ($0.045 per share) | (4,359) | (4,359) | |||||
Net (loss) income | (6,275) | 48 | (6,227) | ||||
Other comprehensive income (loss), net of tax | (2) | (2) | |||||
Balance at May. 31, 2017 | $ 3 | $ 59,060 | $ (6,622) | $ (22,481) | $ (4) | $ (16) | $ 29,940 |
CONSOLIDATED STATEMENTS OF STO7
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Number of common shares for treasury | 1,887 | 1,260,330 | 10,454 |
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, 2017 | May 31, 2016 | May 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net (loss) income | $ (6,227) | $ (5,304) | $ 6,754 |
Adjustments to reconcile net (loss) income to net cash flows provided by operating activities: | |||
Depreciation and amortization | 5,086 | 5,596 | 6,127 |
Loss (gain) on disposition of property and equipment | 1,052 | 735 | (1,710) |
Provision for uncollectable tuition | 3,740 | 5,403 | 5,602 |
Noncash compensation expense | 167 | 557 | (855) |
Deferred income taxes | 625 | (1,379) | (1,534) |
Changes in assets and liabilities: | |||
Student and other receivables | (3,707) | 6,764 | (4,332) |
Prepaid and other current assets | 429 | 73 | (53) |
Condominium inventory | 0 | (236) | 367 |
Other assets | 235 | 202 | (19) |
Income tax receivable/payable | 482 | (2,671) | (1,157) |
Accounts payable | (224) | (372) | 230 |
Deferred income | 42 | 190 | 149 |
Accrued and other liabilities | 6 | (891) | (337) |
Other long-term liabilities | (890) | (1,361) | (384) |
Net cash flows provided by operating activities | 816 | 7,306 | 8,848 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of available for sale investments | (7,721) | (3,897) | (50,141) |
Proceeds from sale of available for sale investments | 7,652 | 3,881 | 61,478 |
Purchases of property and equipment | (5,547) | (959) | (1,311) |
Proceeds from sale of property and equipment | 215 | 75 | 3,628 |
Course development | (565) | (304) | (143) |
Payments received on contract for deed | 7 | 6 | 160 |
Payments received on note receivable | 0 | 0 | 1,390 |
Other | 47 | 11 | 8 |
Net cash flows (used in) provided by investing activities | (5,912) | (1,187) | 15,069 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repayments of capital lease payable | (284) | (244) | (206) |
Purchase of treasury stock | (4) | (3,022) | (32) |
Dividends paid | (4,355) | (4,440) | (4,533) |
Net cash flows used in financing activities | (4,643) | (7,706) | (4,771) |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (9,739) | (1,587) | 19,146 |
CASH AND CASH EQUIVALENTS - Beginning of year | 21,713 | 23,300 | 4,154 |
CASH AND CASH EQUIVALENTS - End of year | 11,974 | 21,713 | 23,300 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW AND NON-CASH INFORMATION: | |||
Cash (received) paid for income taxes | (2,658) | 1,156 | 7,124 |
Cash paid for interest | 851 | 871 | 885 |
Property and equipment sold under contract for deed | 171 | 0 | 0 |
Property and equipment purchases included in accounts payable | 450 | 63 | 24 |
Dividends declared and unpaid at May 31, 2017, 2016, and 2015 | $ 1,094 | $ 1,090 | $ 1,139 |
STATEMENT PRESENTATION AND BASI
STATEMENT PRESENTATION AND BASIS OF CONSOLIDATION | 12 Months Ended |
May 31, 2017 | |
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 Company’s 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, 2017 and 2016, the consolidated balance sheets include Partnership assets of $543 and $611, respectively, and Partnership liabilities of $90 and $91, respectively. The consolidated statements of operations and comprehensive income include Partnership net income of $97, $88, and $75, for the years ended May 31, 2017, 2016, and 2015, 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 Company’s 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 and Fairway Hills. Estimates |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 12 Months Ended |
May 31, 2017 | |
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 Company’s 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 diploma, associate, baccalaureate, master’s and doctoral degree programs in business-related disciplines, such as accounting, management, business administration, and information technology; in healthcare-related disciplines, such as occupational therapy, medical assisting, nursing, surgical technology, and healthcare information and management; in legal-related disciplines, such as paralegal, criminal justice, and professional legal studies; and in higher education. Courses are offered through educational sites and online. During the fiscal year ended May 31, 2017, operations include educational sites located in educational sites in Colorado, Indiana, Kansas, Minnesota, Missouri, Nebraska, New Mexico, Oklahoma, South Dakota, and Texas. Distance learning operations and central administration offices operate from Rapid City, South Dakota. A substantial portion of NAU’s 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. In addition to the university operations, NAUH operates a real estate business known as Fairway Hills Developments, or Fairway Hills. The real estate business rents apartment units and develops and sells condominium units in the Fairway Hills Planned Residential Development area of Rapid City, South Dakota. Fairway Hills is constructing a 24-unit luxury apartment complex. It is anticipated that construction will be complete by the second quarter of fiscal year 2018, but renters began occupying the units on June 1, 2017. Approximately 93%, 92%, and 92% of the Company’s total revenues for each of the years ended May 31, 2017, 2016, and 2015, respectively, were derived from NAU’s academic revenue. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
May 31, 2017 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Cash and Cash Equivalents Investments The Company’s investments were comprised of the following at May 31: 2017 2016 Gross Gross Gross Gross Unrealized Unrealized Unrealized Unrealized Amortized Holding Holding Fair Amortized Holding Holding Fair Cost Gains Losses Value Cost Gains Losses Value Certificates of deposit $ 4,187 $ — $ (4 ) $ 4,183 $ 4,119 $ — $ (2 ) $ 4,117 As of May 31, 2017, the Company’s 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, 2017. 2016, and 2015. Student Receivables Other Receivables Property and Equipment Years Buildings and building improvements 19–40 Land and leasehold improvements 10–20 Furniture, vehicles, and equipment 5–15 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): 2017 2016 Land $ 119 $ 119 Land improvements 23 23 Buildings and building improvements 42,470 39,759 Furniture, vehicles, and equipment 28,680 27,904 Total gross property and equipment 71,292 67,805 Less accumulated depreciation (39,974 ) (36,532 ) Total net property and equipment $ 31,318 $ 31,273 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. The amortization of capitalized course development costs was $271, $291, and $339 for the fiscal years 2017, 2016 and 2015, respectively. Impairment of Long-Lived Assets In February 2017, the Company announced the closure of our Allen and Austin South locations. In addition, upon our review for impairment, we determined that the estimated future undiscounted cash flows associated with the assets of two other campuses are not sufficient to recover their carrying value. Accordingly, their carrying values were reduced to their fair value. An impairment charge of $852 related to these four locations was recorded during the year ended May 31, 2017. The impairment charge is included in loss on disposition of property, within the NAU segment, in the consolidated financial statements. 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 company had no impairments in the year ended May 31, 2015. 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, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENTLY ADOPTED AND NEW ACCOUNTING PRONOUNCEMENTS | In May 2014, the Financial Accounting Standards Board 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 Entity’s 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) In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting In May 2017, the FASB issued ASU 2017-09, Scope of Modification Accounting |
DEPARTMENT OF EDUCATION REQUIRE
DEPARTMENT OF EDUCATION REQUIREMENTS | 12 Months Ended |
May 31, 2017 | |
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” or “HEA”). 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 we 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, 2017, 2016 and 2015, as shown in the underlying calculation: 2017 2016 2015 Title IV HEA funds received $ 69,900.00 $ 90,238.00 $ 106,305.00 Academic revenue $ 84,600.00 =82.62% $ 103,904.00 =86.85% $ 119,200.00 =89.18% (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 Education’s 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 institution’s 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 institution’s composite score for financial responsibility based on its (i) equity ratio, which measures the educational institution’s capital resources, ability to borrow and financial viability; (ii) primary reserve ratio, which measures the educational institution’s ability to support current operations from expendable resources; and (iii) net income ratio, which measures the educational institution’s 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 Education’s 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 2017, 2016 and 2015 fiscal years, the University’s calculations result in a composite score of 1.8, 1.8, and 3.0, 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 institution’s 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 2013 and 2012 are 23.4% and 20.6%, respectively. The draft cohort rate for federal fiscal year 2014 is 24.3%. The University’s current certification to participate in the Title IV programs, which is not provisional, was effective in June 2013 and extends through March 31, 2019. |
CONSTRUCTION IN PROGRESS
CONSTRUCTION IN PROGRESS | 12 Months Ended |
May 31, 2017 | |
Construction In Progress | |
CONSTRUCTION IN PROGRESS | In June and July 2016, Dlorah, Inc. entered into construction contracts totaling approximately $4.7 million on a 24-unit apartment building and a new administrative building. Construction is being funded through operations. Total construction in progress included in property and equipment on the consolidated balance sheet at May 31, 2017, was approximately $5.1 million. It is anticipated that construction will be complete by the second quarter of fiscal year 2018, but renters began occupying the units on June 1, 2017. |
CONDOMINIUM PROJECT
CONDOMINIUM PROJECT | 12 Months Ended |
May 31, 2017 | |
Text Block [Abstract] | |
CONDOMINIUM PROJECT | The Company built 24 condominium units to be sold to the general public called Vista Park. As of May 31, 2017 and 2016, four and six units, respectively, are being leased on a short-term basis while being marketed for sale. These units have been reclassified as property and equipment and are being depreciated. Sales are recorded as (loss) gain on disposition of property within the consolidated statements of operations and comprehensive income. The remaining condominium units are accounted for within condominium inventory on the consolidated balance sheets, and the sales of the condominium units are recorded within condominium sales on the consolidated statements of operations and comprehensive income. One condo unit was sold under a contract for deed in December 2013; however, the sale was not recognized due to the small initial investment and the lack of evidence to support collectability. The sale was recognized in 2017 when the company received over 20% of the sales price. The remaining contract for deed of $133 at May 31, 2017 is included in other assets on the consolidated balance sheet and requires monthly payments of $0.9 through March 1, 2018 at which time all remaining principal will be due in full. One additional condo unit was sold in the year ended May 31, 2017. Both of the 2017 sales were condominiums classified as property and equipment. A total of seventeen units have been sold from the inception of the project through May 31, 2017. |
CONTRACT FOR DEED
CONTRACT FOR DEED | 12 Months Ended |
May 31, 2017 | |
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 10 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 the property deemed sold, resulting in a gain of $1,743. |
LINES OF CREDIT
LINES OF CREDIT | 12 Months Ended |
May 31, 2017 | |
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 currently matured on May 31, 2016. The Company chose not to renew the line for the fiscal year 2017 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 or 2015. |
LEASES
LEASES | 12 Months Ended |
May 31, 2017 | |
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, 2017, 2016 and 2015, was $5,919, $5,737, and $6,037, respectively, which is included in selling, general, and administrative expenses on the consolidated statements of operations and comprehensive income. Future minimum lease payments on noncancelable operating leases for the five years ending May 31 are as follows (in thousands): 2018 $ 6,223 2019 5,972 2020 5,398 2021 4,260 2022 3,061 Thereafter 6,330 Future minimum lease payments include the remaining lease payments for the Tigard, Weldon Springs and Austin South campuses. The associated lease payments were not accelerated because the Company is still receiving economic benefit from the leases. The Allen campus lease payments have been accelerated as there is no intention to utilize the campus going forward, resulting in a liability of $285 at May 31, 2017. This amount is include in accrued and other liabilities on the consolidated balance sheets. Future minimum lease payments on the Allen campus are included in the above schedule. 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 Rapid City campus operations. 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 $19.2 million and $20.3 million as of May 31, 2017 and May 31, 2016, respectively, had a net present value of $11.6 million and $11.9 million as of May 31, 2017 and May 31, 2016, respectively, and was recognized as current and non-current capital lease payable of $331 and $11,237 at May 31, 2017 and $285 and $11,567 at May 31, 2016, respectively. The asset totals $10,600, and accumulated depreciation totals $2,959 and $2,429 at May 31, 2017 and 2016, 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, 2017: 2017 1,159 2018 1,183 2019 1,207 2020 1,231 2021 1,255 Thereafter 13,116 Total future minimum lease obligation $ 19,151 Less: Imputed interest on capital leases (7,583 ) Net present value of lease obligations $ 11,568 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
May 31, 2017 | |
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, 24,224,924 and 24,140,972 shares of common stock were outstanding as of May 31, 2017 and 2016, respectively. No shares of preferred stock or Class A common stock were outstanding at May 31, 2017 and 2016. Stock Repurchase Plans On August 6, 2015, the Company’s Board of Directors authorized the repurchase of up to 350,000 shares, for aggregate consideration not to exceed $1.25 million, of the Company’s 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 depended 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 Company’s 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 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. There was no repurchase of shares during the year ended May 31, 2017. During the years ended May 31, 2017 and 2016, respectively, $4 and $65 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, 2017, 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, 2017, 347,059 shares of common stock remain available for issuance under the Plan. In October 2013, the Company’s Board of Directors adopted the 2013 Restricted Stock Unit Plan (the “2013 Plan”) authorizing the issuance of up to 750,000 shares of the Company’s 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, 2017, 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 Company’s stock price as of the associated grant date, and the expense is accrued ratably over the vesting period of the award. 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 Company’s 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. These shares vested on October 6, 2016. During the quarter ended August 31, 2016, the Company issued 281,250 restricted stock units (“RSUs”) with performance based vesting under the 2013 Plan. The number of shares to be earned was determined by the Company’s profitability and other operating metrics during the year ended May 31, 2017. The grant date fair value of the RSUs was $1.93 per share. No expense was recorded as targeted profitability and operating metrics were not attained and all shares were canceled on May 31, 2017. During the year ended May 31, 2017, the Company awarded 46,945 restricted stock awards with time based vesting at a grant date fair value of $1.96 per share to members of the board of directors. Shares vest one year from the October 20, 2016 grant date and require board service for the entire year. Compensation expense associated with restricted stock awards, totaled $91 for the year ended May 31, 2017. For the year ended May 31, 2016 compensation expense for restricted stock awards totaled $116. 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. At May 31, 2017, unamortized compensation cost of restricted stock awards totaled $36. The unamortized cost is expected to be recognized over a weighted-average period of 0.4 years as of May 31, 2017. A summary of restricted share awards activity as of May 31, 2017 and 2016, 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, 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 Granted 46,945 1.96 Vested (40,485 ) 2.47 Forfeited 0 0 Non-vested shares at May 31, 2017 46,945 $ 1.96 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 $60, $320 and $166, respectively, for the years ended May 31, 2017, 2016, and 2015. 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, 2017 and 2016, the following assumptions were used to determine fair value: Assumptions used: 2017 2016 Expected term (in years) 5.75 5.75 Expected volatility 50.65% 50.40% Weighted average risk free interest rate 1.37% 1.54% Weighted average risk free interest rate range 1.37 - 1.37% 1.54 - 1.54% Weighted average expected dividend 8.60% 5.92% Weighted average expected dividend range 8.60 - 8.60% 5.92 - 5.92% Weighted average fair value $ 0.41 $ 0.84 Expected volatilities are bas A summary of option activity under the Plan as of May 31, 2017 and 2016, 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, 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 Outstanding at May 31, 2016 192,350 $ 4.11 8.4 $ 0 Granted 12,500 1.96 Exercised 0 0 Forfeited or canceled (14,000 ) 5.8 Outstanding at May 31, 2017 190,850 $ 3.85 7.6 $ 7 Exercisable at May 31, 2017 190,850 $ 3.85 7.6 $ 7 The Company recorded compensation expense for stock options of $5, $121 and $27, for the years ended May 31, 2017, 2016 and 2015, respectively, in the consolidated statements of operations. As of May 31, 2017, 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, 2017 or 2016. Dividends The following table presents details of the Company’s fiscal 2017 and 2016 dividend payments: Date declared Record date Payment date Per share 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 August 8, 2016 September 30, 2016 October 7, 2016 $ 0.0450 October 3, 2016 December 31, 2016 January 13, 2017 $ 0.0450 January 28, 2017 March 31, 2017 April 7, 2017 $ 0.0450 April 13, 2017 June 30, 2017 (est) July 7, 2017 $ 0.0450 |
EMPLOYEE COMPENSATION PLANS
EMPLOYEE COMPENSATION PLANS | 12 Months Ended |
May 31, 2017 | |
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, 2017 | |
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 $399 and $381 at May 31, 2017 and 2016, respectively. Such liability is reported within accrued and other liabilities in the consolidated balance sheets. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
May 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Components of the provision for income taxes for the years ended May 31, 2017, 2016 and 2015, were as follows: 2017 2016 2015 Current tax (benefit) expense: Federal $ (2,270 ) $ (1,579 ) $ 5,216 State 95 64 751 (2,175 ) (1,515 ) 5,967 Deferred tax (benefit) expense: Federal 733 (1,183 ) (1,396 ) State (108 ) (196 ) (138 ) 625 (1,379 ) (1,534 ) Total tax (benefit) expense $ (1,550 ) $ (2,894 ) $ 4,433 The effective tax rate varies from the statutory federal income tax rate for the following reasons: 2017 2016 2015 Statutory (34.0)% (34.0)% 34.0% State income taxes — net of federal benefit (0.6) (1.9) 3.6 Deferred tax valuation allowance 15.6 0.0 0.0 Permanent differences and other (0.9) 0.6 2.0 Effective income tax rate (19.9)% (35.3)% 39.6% 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 Company’s deferred tax assets (liabilities) as of May 31 were as follows: 2017 2016 Deferred income tax assets: Account receivable allowances $ 493 $ 317 Bad debt write-offs 1,521 2,131 Other 32 60 Accrued salaries 612 623 Start up costs 217 246 Capital lease obligations 4,338 4,445 Net operating loss carryforwards - expires 2021-2037 243 155 Deferred rent 1,841 2,037 Total deferred income tax assets 9,297 10,014 Valuation allowance (1,222 ) 0 Net deferred income tax assets 8,075 10,014 Deferred income tax liabilities: Fixed assets and course development (7,689 ) (9,133 ) Prepaid expenses (564 ) (450 ) Other (16 ) 0 Total deferred income tax liabilities (8,269 ) (9,583 ) Net deferred income tax (liabilities) assets $ (194 ) $ 431 The Company has determined that it is more likely than not that it will not realize its deferred tax asset. As such, a valuation allowance totaling $1,222 is recorded at May 31, 2017 and is included in deferred income taxes liability in the accompanying consolidated balance sheet. A primary factor in the assessment of this non-cash charge is that the Company is in a cumulative loss position over the three-year period ended May 31, 2017. 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, 2017 | |
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, 2017 2016 2015 Numerator: Net (loss) income attributable to National American University Holdings, Inc. $ (6,277 ) $ (5,349 ) $ 6,718 Denominator: Weighted average shares outstanding used to compute basic net income per common share 24,154,541 24,651,521 25,160,729 Incremental shares issuable upon the assumed exercise of stock options — — — Incremental shares issuable upon the assumed vesting of restricted shares — — 5,003 Common shares used to compute diluted net income per share 24,154,541 24,651,521 25,165,732 Basic net (loss) income per common share $ (0.26 ) $ (0.22 ) $ 0.27 Diluted net (loss) income per common share $ (0.26 ) $ (0.22 ) $ 0.27 A total of 190,850, 192,350 and 78,750 shares of common stock subject to issuance upon exercise of stock options for the years ended May 31, 2017, 2016 and 2015, respectively, have been excluded from the calculation of diluted EPS as the effect would have been anti-dilutive. A total of 87,430, 82,640 and 0 shares of common stock subject to vesting and issuance upon exercise of restricted stock for the year ended May 31, 2017, 2016, and 2015 have been excluded from the calculation of diluted EPS as the effect would have been anti-dilutive. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
May 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | From time to time, the Company 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 Company’s consolidated financial position, cash flows or future results of operations. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
May 31, 2017 | |
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, 2017 and 2016: 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 Unobservable inputs Fair Value May 31, 2017 Investments: Certificates of deposit $ 0 $ 4,183 $ 0 $ 4,183 Money market accounts included in cash equivalents 9 — — 9 Total assets at fair value $ 9 $ 4,183 $ 0 $ 4,192 May 31, 2016 Investments: Certificates of deposit $ 0 $ 4,117 $ 0 $ 4,117 Money market accounts included in cash equivalents 38 — — 38 Total assets at fair value $ 38 $ 4,117 $ 0 $ 4,155 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 (“CD’s”) and money market accounts Fair value of financial instruments |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
May 31, 2017 | |
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 operating and 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, 2017 2016 2015 Consolidated Consolidated Consolidated NAU Other Total NAU Other Total NAU Other Total Revenue: Academic $ 80,595 $ — $ 80,595 $ 88,697 $ — $ 88,697 $ 108,360 $ — $ 108,360 Auxiliary 4,832 — 4,832 6,306 — 6,306 7,920 — 7,920 Rental income apartments — 1,160 1,160 — 1,110 1,110 — 1,164 1,164 Condominium sales — — — — — — — 447 447 Total revenue 85,427 1,160 86,587 95,003 1,110 96,113 116,280 1,611 117,891 Operating expenses: Cost of educational services 27,657 — 27,657 26,093 — 26,093 28,551 — 28,551 Selling, general & administrative 60,171 1,468 61,639 70,819 1,392 72,211 71,681 1,620 73,301 Auxiliary 3,477 — 3,477 4,667 — 4,667 5,629 — 5,629 Cost of condominium sales — — — — — — — 368 368 Loss (gain) on disposition of property 1,147 (95 ) 1,052 810 (75 ) 735 114 (1,824 ) (1,710 ) Total operating expenses 92,452 1,373 93,825 102,389 1,317 103,706 105,975 164 106,139 (Loss) income from operations (7,025 ) (213 ) (7,238 ) (7,386 ) (207 ) (7,593 ) 10,305 1,447 11,752 Other income (expense): Interest inc 78 24 102 80 7 87 51 97 148 Interest exp (850 ) — (850 ) (870 ) — (870 ) (883 ) (8 ) (891 ) Other income (loss) - net — 209 209 — 178 178 — 178 178 Total other (expense) income (772 ) 233 (539 ) (790 ) 185 (605 ) (832 ) 267 (565 ) (Loss) income before taxes $ (7,797 ) $ 20 $ (7,777 ) $ (8,176 ) $ (22 ) $ (8,198 ) $ 9,473 $ 1,714 $ 11,187 As of and for the Year Ended As of and for the Year Ended As of and for the Year Ended May 31, 2017 May 31, 2016 May 31, 2015 Consolidated Consolidated Consolidated NAU Other Total NAU Other Total NAU Other Total Total assets $ 44,422 $ 13,170 $ 57,592 $ 60,614 $ 7,912 $ 68,526 $ 78,042 $ 8,502 $ 86,544 Expenditures for long-lived assets $ 1,136 $ 4,411 $ 5,547 $ 710 $ 249 $ 959 $ 859 $ 452 $ 1,311 Depreciation & amortization $ 4,548 $ 538 $ 5,086 $ 5,058 $ 538 $ 5,596 $ 5,546 $ 581 $ 6,127 |
SUMMARIZED QUARTERLY FINANCIAL
SUMMARIZED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
May 31, 2017 | |
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, 2017 Revenues $ 21,130 $ 21,983 $ 21,331 $ 22,143 Operating loss (2,875 ) (993 ) (2,212 ) (1,158 ) Net loss (2,039 ) (742 ) (2,524 ) (922 ) Net loss attributable to NAUH and Subsidiaries (2,056 ) (752 ) (2,536 ) (931 ) Net loss per share (common): Basic (0.09 ) (0.03 ) (0.10 ) (0.04 ) Diluted (0.09 ) (0.03 ) (0.10 ) (0.04 ) Fiscal Year Ended May 31, 2016 Revenues $ 24,649 $ 25,739 $ 22,678 $ 23,047 Operating income (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 ) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
May 31, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | On July 21, 2017, we entered into an agreement to acquire substantially all of the assets of Henley-Putnam University, a for-profit, post-secondary educational institution that offers 100% online programs focused in the field of strategic security, for an initial cash payment of $1.5 million plus or minus a contingent obligation calculated principally based on Henley-Putnam’s working capital at the time of closing. The transaction is subject to various closing conditions, the satisfaction of which is uncertain at this time. If the closing conditions are satisfied, the transaction is expected to close during the second quarter of our fiscal year 2018. |
SUMMARY OF SIGNIFICANT ACCOUN29
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
May 31, 2017 | |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Investments | Investments The Company’s investments were comprised of the following at May 31: 2017 2016 Gross Gross Gross Gross Unrealized Unrealized Unrealized Unrealized Amortized Holding Holding Fair Amortized Holding Holding Fair Cost Gains Losses Value Cost Gains Losses Value Certificates of deposit $ 4,187 $ — $ (4 ) $ 4,183 $ 4,119 $ — $ (2 ) $ 4,117 As of May 31, 2017, the Company’s 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, 2017. 2016, and 2015. |
Student Receivables | Student Receivables |
Other Receivables | Other Receivables |
Property and Equipment | Property and Equipment Years Buildings and building improvements 19–40 Land and leasehold improvements 10–20 Furniture, vehicles, and equipment 5–15 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): 2017 2016 Land $ 119 $ 119 Land improvements 23 23 Buildings and building improvements 42,470 39,759 Furniture, vehicles, and equipment 28,680 27,904 Total gross property and equipment 71,292 67,805 Less accumulated depreciation (39,974 ) (36,532 ) Total net property and equipment $ 31,318 $ 31,273 |
Condominium Inventory | Condominium Inventory |
Capitalized Course Development Costs | 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. The amortization of capitalized course development costs was $271, $291, and $339 for the fiscal years 2017, 2016 and 2015, respectively. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets In February 2017, the Company announced the closure of our Allen and Austin South locations. In addition, upon our review for impairment, we determined that the estimated future undiscounted cash flows associated with the assets of two other campuses are not sufficient to recover their carrying value. Accordingly, their carrying values were reduced to their fair value. An impairment charge of $852 related to these four locations was recorded during the year ended May 31, 2017. The impairment charge is included in loss on disposition of property, within the NAU segment, in the consolidated financial statements. 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 company had no impairments in the year ended May 31, 2015. |
Deferred Income Taxes | Deferred Income Taxes — |
Non-Controlling Interest | Non-Controlling Interest — |
Leases | Leases |
Rental Income | Rental Income — |
Rental Expense | Rental Expense — |
Advertising | Advertising — |
Academic [Member] | |
Revenue | Academic Revenue Recognition |
Auxiliary [Member] | |
Revenue | Auxiliary Revenue |
SUMMARY OF SIGNIFICANT ACCOUN30
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
May 31, 2017 | |
Accounting Policies [Abstract] | |
Investments | 2017 2016 Gross Gross Gross Gross Unrealized Unrealized Unrealized Unrealized Amortized Holding Holding Fair Amortized Holding Holding Fair Cost Gains Losses Value Cost Gains Losses Value Certificates of deposit $ 4,187 $ — $ (4 ) $ 4,183 $ 4,119 $ — $ (2 ) $ 4,117 |
Property Plant and Equipment Useful Life | Years Buildings and building improvements 19–40 Land and leasehold improvements 10–20 Furniture, vehicles, and equipment 5–15 |
Components of Property, Plant and Equipment, Net | 2017 2016 Land $ 119 $ 119 Land improvements 23 23 Buildings and building improvements 42,470 39,759 Furniture, vehicles, and equipment 28,680 27,904 Total gross property and equipment 71,292 67,805 Less accumulated depreciation (39,974 ) (36,532 ) Total net property and equipment $ 31,318 $ 31,273 |
DEPARTMENT OF EDUCATION REQUI31
DEPARTMENT OF EDUCATION REQUIREMENTS (Tables) | 12 Months Ended |
May 31, 2017 | |
Text Block [Abstract] | |
Revenues Source | 2017 2016 2015 Title IV HEA funds received $ 69,900.00 $ 90,238.00 $ 106,305.00 Academic revenue $ 84,600.00 =82.62% $ 103,904.00 =86.85% $ 119,200.00 =89.18% (cash basis) |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
May 31, 2017 | |
Leases [Abstract] | |
Future Minimum Lease Payments on Non-cancelable Operating Leases | 2018 $ 6,223 2019 5,972 2020 5,398 2021 4,260 2022 3,061 Thereafter 6,330 |
Schedule of Future Minimum Commitments Under Revised Capital Lease Obligation | 2017 1,159 2018 1,183 2019 1,207 2020 1,231 2021 1,255 Thereafter 13,116 Total future minimum lease obligation $ 19,151 Less: Imputed interest on capital leases (7,583 ) Net present value of lease obligations $ 11,568 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
May 31, 2017 | |
Equity [Abstract] | |
Summary of Restricted Shares Activity | Restricted Shares Shares Weighted Average Grant Date Fair Value 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 Granted 46,945 1.96 Vested (40,485 ) 2.47 Forfeited 0 0 Non-vested shares at May 31, 2017 46,945 $ 1.96 |
Summary of Stock Options Issued | Assumptions used: 2017 2016 Expected term (in years) 5.75 5.75 Expected volatility 50.65% 50.40% Weighted average risk free interest rate 1.37% 1.54% Weighted average risk free interest rate range 1.37 - 1.37% 1.54 - 1.54% Weighted average expected dividend 8.60% 5.92% Weighted average expected dividend range 8.60 - 8.60% 5.92 - 5.92% Weighted average fair value $ 0.41 $ 0.84 |
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, 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 Outstanding at May 31, 2016 192,350 $ 4.11 8.4 $ 0 Granted 12,500 1.96 Exercised 0 0 Forfeited or canceled (14,000 ) 5.8 Outstanding at May 31, 2017 190,850 $ 3.85 7.6 $ 7 Exercisable at May 31, 2017 190,850 $ 3.85 7.6 $ 7 |
Summary of Dividend Payments | Date declared Record date Payment date Per share 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 August 8, 2016 September 30, 2016 October 7, 2016 $ 0.0450 October 3, 2016 December 31, 2016 January 13, 2017 $ 0.0450 January 28, 2017 March 31, 2017 April 7, 2017 $ 0.0450 April 13, 2017 June 30, 2017 (est) July 7, 2017 $ 0.0450 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
May 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of Provision for Income Taxes | 2017 2016 2015 Current tax (benefit) expense: Federal $ (2,270 ) $ (1,579 ) $ 5,216 State 95 64 751 (2,175 ) (1,515 ) 5,967 Deferred tax (benefit) expense: Federal 733 (1,183 ) (1,396 ) State (108 ) (196 ) (138 ) 625 (1,379 ) (1,534 ) Total tax (benefit) expense $ (1,550 ) $ (2,894 ) $ 4,433 |
Summary of Effective Income Tax Rate | 2017 2016 2015 Statutory (34.0)% (34.0)% 34.0% State income taxes — net of federal benefit (0.6) (1.9) 3.6 Deferred tax valuation allowance 15.6 0.0 0.0 Permanent differences and other (0.9) 0.6 2.0 Effective income tax rate (19.9)% (35.3)% 39.6% |
Significant Components of Deferred Tax Assets and Liabilities | 2017 2016 Deferred income tax assets: Account receivable allowances $ 493 $ 317 Bad debt write-offs 1,521 2,131 Other 32 60 Accrued salaries 612 623 Start up costs 217 246 Capital lease obligations 4,338 4,445 Net operating loss carryforwards - expires 2021-2037 243 155 Deferred rent 1,841 2,037 Total deferred income tax assets 9,297 10,014 Valuation allowance (1,222 ) 0 Net deferred income tax assets 8,075 10,014 Deferred income tax liabilities: Fixed assets and course development (7,689 ) (9,133 ) Prepaid expenses (564 ) (450 ) Other (16 ) 0 Total deferred income tax liabilities (8,269 ) (9,583 ) Net deferred income tax (liabilities) assets $ (194 ) $ 431 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
May 31, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerator and Denominator for Basic and Diluted EPS Computations | For the year ended May 31, 2017 2016 2015 Numerator: Net (loss) income attributable to National American University Holdings, Inc. $ (6,277 ) $ (5,349 ) $ 6,718 Denominator: Weighted average shares outstanding used to compute basic net income per common share 24,154,541 24,651,521 25,160,729 Incremental shares issuable upon the assumed exercise of stock options — — — Incremental shares issuable upon the assumed vesting of restricted shares — — 5,003 Common shares used to compute diluted net income per share 24,154,541 24,651,521 25,165,732 Basic net (loss) income per common share $ (0.26 ) $ (0.22 ) $ 0.27 Diluted net (loss) income per common share $ (0.26 ) $ (0.22 ) $ 0.27 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
May 31, 2017 | |
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 Unobservable inputs Fair Value May 31, 2017 Investments: Certificates of deposit $ 0 $ 4,183 $ 0 $ 4,183 Money market accounts included in cash equivalents 9 — — 9 Total assets at fair value $ 9 $ 4,183 $ 0 $ 4,192 May 31, 2016 Investments: Certificates of deposit $ 0 $ 4,117 $ 0 $ 4,117 Money market accounts included in cash equivalents 38 — — 38 Total assets at fair value $ 38 $ 4,117 $ 0 $ 4,155 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
May 31, 2017 | |
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, 2017 2016 2015 Consolidated Consolidated Consolidated NAU Other Total NAU Other Total NAU Other Total Revenue: Academic $ 80,595 $ — $ 80,595 $ 88,697 $ — $ 88,697 $ 108,360 $ — $ 108,360 Auxiliary 4,832 — 4,832 6,306 — 6,306 7,920 — 7,920 Rental income apartments — 1,160 1,160 — 1,110 1,110 — 1,164 1,164 Condominium sales — — — — — — — 447 447 Total revenue 85,427 1,160 86,587 95,003 1,110 96,113 116,280 1,611 117,891 Operating expenses: Cost of educational services 27,657 — 27,657 26,093 — 26,093 28,551 — 28,551 Selling, general & administrative 60,171 1,468 61,639 70,819 1,392 72,211 71,681 1,620 73,301 Auxiliary 3,477 — 3,477 4,667 — 4,667 5,629 — 5,629 Cost of condominium sales — — — — — — — 368 368 Loss (gain) on disposition of property 1,147 (95 ) 1,052 810 (75 ) 735 114 (1,824 ) (1,710 ) Total operating expenses 92,452 1,373 93,825 102,389 1,317 103,706 105,975 164 106,139 (Loss) income from operations (7,025 ) (213 ) (7,238 ) (7,386 ) (207 ) (7,593 ) 10,305 1,447 11,752 Other income (expense): Interest inc 78 24 102 80 7 87 51 97 148 Interest exp (850 ) — (850 ) (870 ) — (870 ) (883 ) (8 ) (891 ) Other income (loss) - net — 209 209 — 178 178 — 178 178 Total other (expense) income (772 ) 233 (539 ) (790 ) 185 (605 ) (832 ) 267 (565 ) (Loss) income before taxes $ (7,797 ) $ 20 $ (7,777 ) $ (8,176 ) $ (22 ) $ (8,198 ) $ 9,473 $ 1,714 $ 11,187 As of and for the Year Ended As of and for the Year Ended As of and for the Year Ended May 31, 2017 May 31, 2016 May 31, 2015 Consolidated Consolidated Consolidated NAU Other Total NAU Other Total NAU Other Total Total assets $ 44,422 $ 13,170 $ 57,592 $ 60,614 $ 7,912 $ 68,526 $ 78,042 $ 8,502 $ 86,544 Expenditures for long-lived assets $ 1,136 $ 4,411 $ 5,547 $ 710 $ 249 $ 959 $ 859 $ 452 $ 1,311 Depreciation & amortization $ 4,548 $ 538 $ 5,086 $ 5,058 $ 538 $ 5,596 $ 5,546 $ 581 $ 6,127 |
SUMMARIZED QUARTERLY FINANCIA38
SUMMARIZED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
May 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Quarter First Second Third Fourth Fiscal Year Ended May 31, 2017 Revenues $ 21,130 $ 21,983 $ 21,331 $ 22,143 Operating loss (2,875 ) (993 ) (2,212 ) (1,158 ) Net loss (2,039 ) (742 ) (2,524 ) (922 ) Net loss attributable to NAUH and Subsidiaries (2,056 ) (752 ) (2,536 ) (931 ) Net loss per share (common): Basic (0.09 ) (0.03 ) (0.10 ) (0.04 ) Diluted (0.09 ) (0.03 ) (0.10 ) (0.04 ) Fiscal Year Ended May 31, 2016 Revenues $ 24,649 $ 25,739 $ 22,678 $ 23,047 Operating income (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 ) |
STATEMENT PRESENTATION AND BA39
STATEMENT PRESENTATION AND BASIS OF CONSOLIDATION (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | Feb. 29, 2016 | Nov. 30, 2015 | Aug. 31, 2015 | May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||||||||||
Assets | $ 57,592 | $ 68,526 | $ 57,592 | $ 68,526 | $ 86,544 | ||||||
Net income | $ (931) | $ (2,536) | $ (752) | $ (2,056) | $ (970) | $ (1,891) | $ (1,178) | $ (1,309) | $ (6,275) | $ (5,348) | 6,716 |
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 | $ 543 | $ 611 | $ 543 | $ 611 | |||||||
Liabilities | $ 90 | $ 91 | 90 | 91 | |||||||
Net income | $ 97 | $ 88 | $ 75 |
NATURE OF OPERATIONS (Details N
NATURE OF OPERATIONS (Details Narrative) | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Sales Revenue Net [Member] | Nau [Member] | |||
Nature Of Operations [Line Items] | |||
Total revenues that were derived from NAU's academic revenue | 93.00% | 92.00% | 92.00% |
SUMMARY OF SIGNIFICANT ACCOUN41
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | May 31, 2017 | May 31, 2016 |
Available For Sale Investments [Line Items] | ||
Amortized Cost | $ 4,187 | $ 4,119 |
Gross Unrealized Holding Gains | 0 | 0 |
Gross Unrealized Holding Losses | (4) | (2) |
Fair Value | 4,183 | 4,117 |
Certificates Of Deposit [Member] | ||
Available For Sale Investments [Line Items] | ||
Amortized Cost | 4,187 | 4,119 |
Gross Unrealized Holding Gains | 0 | 0 |
Gross Unrealized Holding Losses | (4) | (2) |
Fair Value | $ 4,183 | $ 4,117 |
SUMMARY OF SIGNIFICANT ACCOUN42
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 12 Months Ended |
May 31, 2017 | |
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 ACCOUN43
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($) $ in Thousands | May 31, 2017 | May 31, 2016 |
Property and equipment - net | ||
Land | $ 119 | $ 119 |
Land improvements | 23 | 23 |
Buildings and building improvements | 42,470 | 39,759 |
Furniture, vehicles, and equipment | 28,680 | 27,904 |
Total gross property and equipment | 71,292 | 67,805 |
Less accumulated depreciation | (39,974) | (36,532) |
Total net property and equipment | $ 31,318 | $ 31,273 |
SUMMARY OF SIGNIFICANT ACCOUN44
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Basis Of Presentation [Line Items] | |||
Proceeds from sale of available for sale investments | $ 7,652 | $ 3,881 | $ 61,478 |
Depreciation expense | 5,086 | 5,596 | 6,127 |
Depreciation expense for property and equipment | 4,815 | 5,305 | 5,788 |
Impairment of long lived-assets | 852 | ||
Deferred rent and tenant improvement liability | 4,910 | 5,432 | |
Advertising cost | 9,125 | 10,734 | 9,807 |
Amortization related to development cost | 271 | 291 | 339 |
Denver | |||
Basis Of Presentation [Line Items] | |||
Impairment of long lived-assets | 85 | ||
Weldon Springs | |||
Basis Of Presentation [Line Items] | |||
Impairment of long lived-assets | 328 | ||
Tigard | |||
Basis Of Presentation [Line Items] | |||
Impairment of long lived-assets | 394 | ||
Allen Campus | |||
Basis Of Presentation [Line Items] | |||
Deferred rent and tenant improvement liability | 285 | ||
Capital Lease Asset [Member] | |||
Basis Of Presentation [Line Items] | |||
Depreciation expense | $ 530 | $ 530 | $ 530 |
RECENTLY ADOPTED AND NEW ACCO45
RECENTLY ADOPTED AND NEW ACCOUNTING PRONOUNCEMENTS (Details Narrative) - USD ($) $ in Thousands | May 31, 2017 | May 31, 2016 |
Recently Adopted And New Accounting Pronouncements Details Narrative | ||
Current deferred tax asset reclassification | $ 2,621 | |
Long-term deferred tax liability reclassification | (2,190) | |
Net deferred tax asset | $ 0 | $ 431 |
DEPARTMENT OF EDUCATION REQUI46
DEPARTMENT OF EDUCATION REQUIREMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Regulatory Requirements [Line Items] | |||
Academic revenue | $ 80,595 | $ 88,697 | $ 108,360 |
Percentage of revenue collected from funds under title IV programs | 82.62% | 86.85% | 89.18% |
Cash Basis Method [Member] | |||
Regulatory Requirements [Line Items] | |||
Academic revenue | $ 84,600 | $ 103,904 | $ 119,200 |
United States Department Of Education Student Financial Aid Under Title I V Programs [Member] | |||
Regulatory Requirements [Line Items] | |||
Title IV HEA funds received | $ 69,900 | $ 90,238 | $ 106,305 |
DEPARTMENT OF EDUCATION REQUI47
DEPARTMENT OF EDUCATION REQUIREMENTS (Details Narrative) - Point | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
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 | 1.8 | 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 2013 [Member] | |||
Regulatory Requirements [Line Items] | |||
Cohort default rates | .234 | ||
Federal Fiscal Year 2012 [Member] | |||
Regulatory Requirements [Line Items] | |||
Cohort default rates | 0.206 | ||
Federal Fiscal Year 2014 [Member] | |||
Regulatory Requirements [Line Items] | |||
Draft Cohort Default Rate | .243 |
CONSTRUCTION IN PROGRESS (Detai
CONSTRUCTION IN PROGRESS (Details Narrative) - USD ($) $ in Thousands | May 31, 2017 | Jul. 31, 2016 |
Construction In Progress Details Narrative | ||
Construction contracts | $ 4,700 | |
Construction in progress | $ 5,100 |
CONDOMINIUM PROJECT (Details Na
CONDOMINIUM PROJECT (Details Narrative) | May 31, 2017USD ($) |
Condominium Project Details Narrative | |
Remaining contract for deed | $ 133,000 |
Required monthly payments | $ 900 |
CONTRACT FOR DEED (Details Narr
CONTRACT FOR DEED (Details Narrative) - USD ($) $ in Thousands | Jul. 11, 2014 | Mar. 28, 2013 | May 31, 2017 | May 31, 2016 | May 31, 2015 |
Real Estate Properties [Line Items] | |||||
Loss (gain) on disposition of property | $ 1,052 | $ 735 | $ (1,710) | ||
Former Rapid City Campus | |||||
Real Estate Properties [Line Items] | |||||
Property, sales price | $ 4,000 | ||||
Loss (gain) on disposition of property | $ (1,743) | ||||
Leaseback payments and maintenance expenses | 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, 2017USD ($) |
Leases [Abstract] | |
2,018 | $ 6,223 |
2,019 | 5,972 |
2,020 | 5,398 |
2,021 | 4,260 |
2,022 | 3,061 |
Thereafter | $ 6,330 |
LEASES (Details 1)
LEASES (Details 1) - USD ($) $ in Thousands | May 31, 2017 | May 31, 2016 |
Leases [Abstract] | ||
2,017 | $ 1,159 | |
2,018 | 1,183 | |
2,019 | 1,207 | |
2,020 | 1,231 | |
2,021 | 1,255 | |
Thereafter | 13,116 | |
Total future minimum lease obligation | 19,151 | $ 20,300 |
Less: Imputed interest on capital leases | (7,583) | |
Net present value of lease obligations | $ 11,568 | $ 11,852 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |||
May 31, 2017 | May 31, 2016 | May 31, 2015 | May 31, 2014 | |
Lease Liability [Line Items] | ||||
Operating lease rent expense | $ 5,919 | $ 5,737 | $ 6,037 | |
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 | 19,151 | 20,300 | ||
Net present value of capital lease obligation | 11,568 | 11,852 | ||
Capital lease payable, current | 331 | 285 | ||
Capital lease payable, non-current | 11,237 | 11,567 | ||
Capital lease assets | 10,600 | 10,600 | ||
Capital lease assets, accumulated depreciation | 2,959 | 2,429 | ||
Deferred rent and tenant improvement liability | 4,910 | $ 5,432 | ||
Allen Campus | ||||
Lease Liability [Line Items] | ||||
Deferred rent and tenant improvement liability | $ 285 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - Restricted Stock [Member] - $ / shares | 12 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Restricted Shares | ||
Shares, non-vested shares, beginning balance | 40,485 | 42,155 |
Shares, granted | 46,495 | 40,845 |
Shares, vested | (40,485) | (42,155) |
Shares, forfeited | 0 | 0 |
Shares, non-vested shares, ending balance | 46,945 | 40,485 |
Weighted average grant date fair value | ||
Weighted average grant date fair value, non-vested shares, beginning balance | $ 2.47 | $ 3.11 |
Weighted average grant date fair value, granted | 1.96 | 2.47 |
Weighted average grant date fair value, vested | 2.47 | 3.11 |
Weighted average grant date fair value,forfeited | 0 | 0 |
Weighted average grant date fair value, Non-vested shares, Ending balance | $ 1.96 | $ 2.47 |
STOCKHOLDERS' EQUITY (Details 1
STOCKHOLDERS' EQUITY (Details 1) - Stock Option [Member] - $ / shares | 12 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 5 years 9 months | 5 years 9 months |
Expected volatility | 50.65% | 50.40% |
Weighted average risk free interest rate | 1.37% | 1.54% |
Weighted average risk free interest rate range, minimum | 1.37% | 1.54% |
Weighted average risk free interest rate range, maximum | 1.37% | 1.54% |
Weighted average expected dividend | 8.60% | 5.92% |
Weighted average expected dividend range, minimum | 8.60% | 5.92% |
Weighted average expected dividend range, maximum | 8.60% | 5.92% |
Weighted average fair value | $ 0.41 | $ 0.84 |
STOCKHOLDERS' EQUITY (Details 2
STOCKHOLDERS' EQUITY (Details 2) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Shares | |||
Outstanding Shares, Beginning Balance | 192,350 | 78,750 | |
Shares, Granted | 12,500 | 148,475 | |
Shares, Exercised | 0 | 0 | |
Shares, Forfeited or canceled | (14,000) | (34,875) | |
Outstanding Shares, Ending Balance | 190,850 | 192,350 | 78,750 |
Exercisable Shares, At The End of Period | 190,850 | 192,350 | |
Weighted Average Exercise Price | |||
Weighted Average Exercise Price, Beginning balance | $ 4.11 | $ 6.34 | |
Weighted Average Exercise Price, Granted | 1.96 | 3.06 | |
Weighted Average Exercise Price, Exercised | 0 | 0 | |
Weighted Average Exercise Price, Forfeited or canceled | 5.80 | 4.67 | |
Weighted Average Exercise Price, Ending balance | 3.85 | 4.11 | $ 6.34 |
Weighted Average Exercise Price, Ending balance exercisable | $ 3.85 | $ 4.11 | |
Weighted Average Remaining Contractual Life (in years) | |||
Weighted Average Remaining Contractual Life (in years), Outstanding | 7 years 7 months 6 days | 8 years 4 months 24 days | 7 years 1 month 6 days |
Weighted Average Remaining Contractual Life (in years), Exercisable | 7 years 7 months 6 days | 8 years 4 months 24 days | |
Aggregate Intrinsic Value | |||
Aggregate Intrinsic Value, Ending Balance | $ 7 | $ 0 | |
Aggregate Intrinsic Value, Exercisable at the end of Period | $ 7 | $ 0 |
STOCKHOLDERS' EQUITY (Details 3
STOCKHOLDERS' EQUITY (Details 3) | 12 Months Ended | |
May 31, 2017$ / shares | ||
Period One [Member] | ||
Dividends Payable [Line Items] | ||
Date declared | Apr. 13, 2015 | |
Record date | Jun. 30, 2015 | |
Payment date | Jul. 10, 2015 | |
Per share | $ 0.045 | |
Period Two [Member] | ||
Dividends Payable [Line Items] | ||
Date declared | Aug. 10, 2015 | |
Record date | Sep. 30, 2015 | |
Payment date | Oct. 9, 2015 | |
Per share | $ 0.045 | |
Period Three [Member] | ||
Dividends Payable [Line Items] | ||
Date declared | Oct. 5, 2015 | |
Record date | Dec. 31, 2015 | |
Payment date | Jan. 15, 2016 | |
Per share | $ 0.045 | |
Period Four [Member] | ||
Dividends Payable [Line Items] | ||
Date declared | Jan. 23, 2016 | |
Record date | Mar. 31, 2016 | |
Payment date | Apr. 8, 2016 | |
Per share | $ 0.045 | |
Period Five [Member] | ||
Dividends Payable [Line Items] | ||
Date declared | Apr. 4, 2016 | |
Record date | Jun. 30, 2016 | |
Payment date | Jul. 8, 2016 | |
Per share | $ 0.045 | |
Period Six [Member] | ||
Dividends Payable [Line Items] | ||
Date declared | Aug. 8, 2016 | |
Record date | Sep. 30, 2016 | |
Payment date | Oct. 7, 2016 | |
Per share | $ 0.045 | |
Period Seven [Member] | ||
Dividends Payable [Line Items] | ||
Date declared | Oct. 3, 2016 | |
Record date | Dec. 31, 2016 | |
Payment date | Jan. 13, 2017 | |
Per share | $ 0.045 | |
Period Eight [Member] | ||
Dividends Payable [Line Items] | ||
Date declared | Jan. 28, 2017 | |
Record date | Mar. 31, 2017 | |
Payment date | Apr. 7, 2017 | |
Per share | $ 0.045 | |
Period Nine [Member] | ||
Dividends Payable [Line Items] | ||
Date declared | Apr. 13, 2017 | |
Record date | Jun. 30, 2017 | |
Payment date | Jul. 7, 2017 | [1] |
Per share | $ 0.045 | |
[1] | estimated |
STOCKHOLDERS' EQUITY (Details N
STOCKHOLDERS' EQUITY (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Aug. 31, 2016 | Nov. 30, 2015 | May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Common stock, shares outstanding | 24,224,924 | 24,140,972 | |||
Treasury Stock dollars resulting from settlement of Stock Based Compensation | $ 4 | $ 65 | $ 32 | ||
Compensation expenses restricted stock award | 91 | 116 | 122 | ||
Unamortized compensation cost of restricted stock | $ 36 | ||||
Unamortized compensation cost weighted average period | 4 months 24 days | ||||
Compensation expense of stock options | $ 5 | 121 | 27 | ||
Unrestricted stock compensation expense | $ 60 | $ 320 | 166 | ||
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 | |||
Total Authorized Capital Stock | 51,100,000 | 51,100,000 | |||
Restricted Stock Units | |||||
Restricted stock units issued | 281,250 | 187,500 | |||
Grant date fair value | $ 1.93 | $ 3.06 | |||
Restricted stock units compensation expense | $ 0 | $ 0 | $ (1,170) | ||
2013 Plan [Member] | |||||
Shares authorized for issuance | 750,000 | ||||
Common stock remain available for issuance | 750,000 | ||||
2009 Stock Option and Compensation Plan [Member] | |||||
Shares authorized for issuance | 1,300,000 | ||||
Common stock remain available for issuance | 347,059 | ||||
Single Shareholder | |||||
Stock Repurchased, Shares | 853,073 | ||||
Stock Repurchased, Value | $ 2,039 | ||||
February 2016 Share Repurchase | |||||
Stock Repurchased, Shares | 30,440 | ||||
Stock Repurchased, Value | $ 50 | ||||
Maximum Shares Repurchase authorized | $ 500 | ||||
Maximum price per share authorized | $ 1.75 | ||||
August 2015 Share Repurchase | |||||
Stock Repurchased, Shares | 353,581 | ||||
Stock Repurchased, Value | $ 868 | ||||
Maximum Shares Repurchase authorized | $ 350,000 | ||||
Maximum price per share authorized | $ 1,250 | ||||
Common Class A [Member] | |||||
Common Stock Authorized | 100,000 | 100,000 | |||
Common Stock Par Value | $ 0.0001 | $ 0.0001 |
EMPLOYEE COMPENSATION PLANS (De
EMPLOYEE COMPENSATION PLANS (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
401(k) Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer discretionary contribution amount | $ 0 | $ 514 | $ 0 |
Employer contribution matching percentage | 5.00% | 5.00% | 5.00% |
Accrued contribution employer amount | $ 2 | $ 49 | |
Compensation Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Incentive expense | 0 | $ 0 | $ 390 |
Annual compensation paid in common stock | 100 | ||
Reduction in CEO common stock compensation | $ 67 |
SELF-INSURED HEALTH INSURANCE (
SELF-INSURED HEALTH INSURANCE (Details Narrative) - USD ($) $ in Thousands | May 31, 2017 | May 31, 2016 |
Self-insured Health Insurance Details Narrative | ||
Claims outstanding | $ 399 | $ 381 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Current tax (benefit) expense: | |||
Federal | $ (2,270) | $ (1,579) | $ 5,216 |
State | 95 | 64 | 751 |
Total current tax (benefit) expense | (2,175) | (1,515) | 5,967 |
Deferred tax (benefit) expense: | |||
Federal | 733 | (1,183) | (1,396) |
State | (108) | (196) | (138) |
Total deferred tax (benefit) expense | 625 | (1,379) | (1,534) |
Total tax (benefit) expense | $ (1,550) | $ (2,894) | $ 4,433 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Statutory | (34.00%) | (34.00%) | 34.00% |
State income taxes - net of federal benefit | (0.60%) | (1.90%) | 3.60% |
Deferred tax valuation allowance | 15.60% | 0.00% | 0.00% |
Permanent differences and other | (0.90%) | 0.60% | 2.00% |
Effective income tax rate | (19.90%) | (35.30%) | 39.60% |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) $ in Thousands | 6 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Deferred income tax assets: | ||
Account receivable allowances | $ 493 | $ 317 |
Bad debt write-offs | 1,521 | 2,131 |
Other | 32 | 60 |
Accrued salaries | 612 | 623 |
Start up costs | 217 | 246 |
Capital lease obligations | 4,338 | 4,445 |
Net operating loss carryforwards | $ 243 | 155 |
Net operating loss carryforward expiration | 2021-2037 | |
Deferred rent | $ 1,841 | 2,037 |
Total deferred income tax assets | 9,297 | 10,014 |
Valuation allowance | (1,222) | 0 |
Total deferred income tax assets | 8,075 | 10,014 |
Deferred income tax liabilities: | ||
Fixed assets and course development | (7,689) | (9,133) |
Prepaid expenses | (564) | (450) |
Other | (16) | 0 |
Total deferred income tax liabilities | (8,269) | (9,583) |
Net deferred income tax (liabilities) assets | $ (194) | $ 431 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) $ in Thousands | May 31, 2017USD ($) |
Income Taxes Details Narrative | |
Valuation allowance | $ 1,222 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | Feb. 29, 2016 | Nov. 30, 2015 | Aug. 31, 2015 | May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Numerator: | |||||||||||
Net (loss) income attributable to National American University Holdings, Inc. | $ (931) | $ (2,536) | $ (752) | $ (2,056) | $ (970) | $ (1,891) | $ (1,178) | $ (1,309) | $ (6,275) | $ (5,348) | $ 6,716 |
Denominator: | |||||||||||
Weighted average shares outstanding used to compute basic net income per common share | 24,154,541 | 24,651,521 | 25,160,729 | ||||||||
Incremental shares issuable upon the assumed exercise of stock options | 0 | 0 | 0 | ||||||||
Incremental shares issuable upon the assumed vesting of restricted shares | 0 | 0 | 5,003 | ||||||||
Common shares used to compute diluted net income per share | 24,154,541 | 24,651,521 | 25,165,732 | ||||||||
Basic net income per common share | $ (0.04) | $ (0.10) | $ (0.03) | $ (0.09) | $ (0.04) | $ (0.08) | $ (0.05) | $ (0.05) | $ (0.26) | $ (0.22) | $ 0.27 |
Diluted net income per common share | $ (0.04) | $ (0.10) | $ (0.03) | $ (0.09) | $ (0.04) | $ (0.08) | $ (0.05) | $ (0.05) | $ (0.26) | $ (0.22) | $ 0.27 |
EARNINGS PER SHARE (Details Nar
EARNINGS PER SHARE (Details Narrative) - shares | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Stock Option [Member] | |||
Computation Of Earnings Per Share [Line Items] | |||
Number of shares excluded from calculation of diluted EPS | 190,850 | 192,350 | 78,750 |
Restricted Stock [Member] | |||
Computation Of Earnings Per Share [Line Items] | |||
Gross restricted shares outstanding | 87,430 | 82,640 | 0 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Fair Value Measurements Recurring [Member] - USD ($) $ in Thousands | May 31, 2017 | May 31, 2016 |
Investments | ||
Total assets at fair value | $ 4,192 | $ 4,155 |
Money market accounts included in cash equivalents [Member] | ||
Investments | ||
Total assets at fair value | 9 | 38 |
Certificates of Deposit [Member] | ||
Investments | ||
Total assets at fair value | 4,183 | 4,117 |
Fair Value Inputs Level 1 [Member] | ||
Investments | ||
Total assets at fair value | 9 | 38 |
Fair Value Inputs Level 1 [Member] | Money market accounts included in cash equivalents [Member] | ||
Investments | ||
Total assets at fair value | 9 | 38 |
Fair Value Inputs Level 1 [Member] | Certificates of Deposit [Member] | ||
Investments | ||
Total assets at fair value | 0 | 0 |
Fair Value Inputs Level 2 [Member] | ||
Investments | ||
Total assets at fair value | 4,183 | 4,117 |
Fair Value Inputs Level 2 [Member] | Money market accounts included in cash equivalents [Member] | ||
Investments | ||
Total assets at fair value | 0 | 0 |
Fair Value Inputs Level 2 [Member] | Certificates of Deposit [Member] | ||
Investments | ||
Total assets at fair value | 4,183 | 4,117 |
Fair Value, Inputs, Level 3 [Member] | ||
Investments | ||
Total assets at fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Money market accounts included in cash equivalents [Member] | ||
Investments | ||
Total assets at fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Certificates of Deposit [Member] | ||
Investments | ||
Total assets at fair value | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Deta69
FAIR VALUE MEASUREMENTS (Details Narrative) - USD ($) $ in Thousands | May 31, 2017 | May 31, 2016 |
Fair Value Disclosures [Abstract] | ||
Estimated fair value of capital lease obligations | $ 11,568 | $ 11,852 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | Feb. 29, 2016 | Nov. 30, 2015 | Aug. 31, 2015 | May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Revenue: | |||||||||||
Academic | $ 80,595 | $ 88,697 | $ 108,360 | ||||||||
Auxiliary | 4,832 | 6,306 | 7,920 | ||||||||
Rental income apartments | 1,160 | 1,110 | 1,164 | ||||||||
Condominium sales | 0 | 0 | 447 | ||||||||
Total revenue | $ 22,143 | $ 21,331 | $ 21,983 | $ 21,130 | $ 23,047 | $ 22,678 | $ 25,739 | $ 24,649 | 86,587 | 96,113 | 117,891 |
Operating expenses: | |||||||||||
Cost of educational services | 27,657 | 26,093 | 28,551 | ||||||||
Selling, general & administrative | 61,639 | 72,211 | 73,301 | ||||||||
Auxiliary | 3,477 | 4,667 | 5,629 | ||||||||
Cost of condominium sales | 0 | 0 | 368 | ||||||||
Loss (gain) on disposition of property | 1,052 | 735 | (1,710) | ||||||||
Total operating expenses | 93,825 | 103,706 | 106,139 | ||||||||
(Loss) income from operations | (1,158) | $ (2,212) | $ (993) | $ (2,875) | (1,475) | $ (2,844) | $ (1,358) | $ (1,916) | (7,238) | (7,593) | 11,752 |
Other income (expense): | |||||||||||
Interest inc | 102 | 87 | 148 | ||||||||
Interest exp | (850) | (870) | (891) | ||||||||
Other income (loss) - net | 209 | 178 | 178 | ||||||||
Total other (expense) income | (539) | (605) | (565) | ||||||||
(Loss) income before taxes | (7,777) | (8,198) | 11,187 | ||||||||
Total assets | 57,592 | 68,526 | 57,592 | 68,526 | 86,544 | ||||||
Expenditures for for long-lived assets | 5,547 | 959 | 1,311 | ||||||||
Depreciation & amortization | 5,086 | 5,596 | 6,127 | ||||||||
Nau [Member] | |||||||||||
Revenue: | |||||||||||
Academic | 80,595 | 88,697 | 108,360 | ||||||||
Auxiliary | 4,832 | 6,306 | 7,920 | ||||||||
Rental income apartments | 0 | 0 | 0 | ||||||||
Condominium sales | 0 | 0 | 0 | ||||||||
Total revenue | 85,427 | 95,003 | 116,280 | ||||||||
Operating expenses: | |||||||||||
Cost of educational services | 27,657 | 26,093 | 28,551 | ||||||||
Selling, general & administrative | 60,171 | 70,819 | 71,681 | ||||||||
Auxiliary | 3,477 | 4,667 | 5,629 | ||||||||
Cost of condominium sales | 0 | 0 | 0 | ||||||||
Loss (gain) on disposition of property | 1,147 | 810 | 114 | ||||||||
Total operating expenses | 92,452 | 102,389 | 105,975 | ||||||||
(Loss) income from operations | (7,025) | (7,386) | 10,305 | ||||||||
Other income (expense): | |||||||||||
Interest inc | 78 | 80 | 51 | ||||||||
Interest exp | (850) | (870) | (883) | ||||||||
Other income (loss) - net | 0 | 0 | 0 | ||||||||
Total other (expense) income | (772) | (790) | (832) | ||||||||
(Loss) income before taxes | (7,797) | (8,176) | 9,473 | ||||||||
Total assets | 44,422 | 60,614 | 44,422 | 60,614 | 78,042 | ||||||
Expenditures for for long-lived assets | 1,136 | 710 | 859 | ||||||||
Depreciation & amortization | 4,548 | 5,058 | 5,546 | ||||||||
Other [Member] | |||||||||||
Revenue: | |||||||||||
Academic | 0 | 0 | 0 | ||||||||
Auxiliary | 0 | 0 | 0 | ||||||||
Rental income apartments | 1,160 | 1,110 | 1,164 | ||||||||
Condominium sales | 0 | 0 | 447 | ||||||||
Total revenue | 1,160 | 1,110 | 1,611 | ||||||||
Operating expenses: | |||||||||||
Cost of educational services | 0 | 0 | 0 | ||||||||
Selling, general & administrative | 1,468 | 1,392 | 1,620 | ||||||||
Auxiliary | 0 | 0 | 0 | ||||||||
Cost of condominium sales | 0 | 0 | 368 | ||||||||
Loss (gain) on disposition of property | (95) | (75) | (1,824) | ||||||||
Total operating expenses | 1,373 | 1,317 | 164 | ||||||||
(Loss) income from operations | (213) | (207) | 1,447 | ||||||||
Other income (expense): | |||||||||||
Interest inc | 24 | 7 | 97 | ||||||||
Interest exp | 0 | 0 | (8) | ||||||||
Other income (loss) - net | 209 | 178 | 178 | ||||||||
Total other (expense) income | 233 | 185 | 267 | ||||||||
(Loss) income before taxes | 20 | (22) | 1,714 | ||||||||
Total assets | $ 13,170 | $ 7,912 | 13,170 | 7,912 | 8,502 | ||||||
Expenditures for for long-lived assets | 4,411 | 249 | 452 | ||||||||
Depreciation & amortization | $ 538 | $ 538 | $ 581 |
SUMMARIZED QUARTERLY FINANCIA71
SUMMARIZED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | Feb. 29, 2016 | Nov. 30, 2015 | Aug. 31, 2015 | May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 22,143 | $ 21,331 | $ 21,983 | $ 21,130 | $ 23,047 | $ 22,678 | $ 25,739 | $ 24,649 | $ 86,587 | $ 96,113 | $ 117,891 |
Operating (loss) income | (1,158) | (2,212) | (993) | (2,875) | (1,475) | (2,844) | (1,358) | (1,916) | (7,238) | (7,593) | 11,752 |
Net loss | (922) | (2,524) | (742) | (2,039) | (961) | (1,875) | (1,170) | (1,298) | (6,227) | (5,304) | 6,754 |
Net loss attributable to NAUH and Subsidiaries | $ (931) | $ (2,536) | $ (752) | $ (2,056) | $ (970) | $ (1,891) | $ (1,178) | $ (1,309) | $ (6,275) | $ (5,348) | $ 6,716 |
Net (loss) income per share (common): | |||||||||||
Basic | $ (0.04) | $ (0.10) | $ (0.03) | $ (0.09) | $ (0.04) | $ (0.08) | $ (0.05) | $ (0.05) | $ (0.26) | $ (0.22) | $ 0.27 |
Diluted | $ (0.04) | $ (0.10) | $ (0.03) | $ (0.09) | $ (0.04) | $ (0.08) | $ (0.05) | $ (0.05) | $ (0.26) | $ (0.22) | $ 0.27 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) $ in Thousands | 1 Months Ended |
Jul. 21, 2017USD ($) | |
Subsequent Events Details Narrative | |
Acquisition price | $ 1,500 |