Home News For-profit National American U raises doubts about survival – Education Dive

For-profit National American U raises doubts about survival – Education Dive

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Dive Brief:

  • For-profit college operator National American University Holdings (NAUH) this week reported its revenue for the second quarter, which ended Nov. 30, fell more than 24% year-over-year to $15.2 million, according to a securities filing. At $11.3 million, the company’s net loss nearly tripled from a year ago. NAUH ended the period with $530,000 in cash, compared to $5.3 million at the end of its 2018 fiscal year in May, and had a working capital shortfall of $8.7 million.
  • While the company expects ongoing cost-cutting efforts to be successful, NAUH added language to the filing acknowledging “substantial doubt” in whether it will have sufficient resources to continue as a going concern over the next year, raising the possibility of bankruptcy or liquidation.
  • NAUH also announced this week that its chief financial officer, David Heflin, resigned effective Feb. 1. CEO Ronald Shape will also serve as interim CFO while the company searches for a replacement.

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