• Enrollment by headcount increased 24.3% over the prior year to a record 9,930 students enrolled in National American University as of February 28, 2011.
• The Company’s FY 2011 third quarter total revenue increased 17.5% to $27.7 million from $23.6 million in the prior-year period with the Company’s academic segment’s FY 2011 third quarter total revenue increasing 19.9% to $27.5 million, compared to $22.9 million in the FY 2010 third quarter.
• FY 2011 third quarter income before non-controlling interest and taxes for the Company increased 32.0% to $6.3 million from $4.8 million in the prior-year period, and FY 2011 third quarter EBITDA increased 28.7% to $7.0 million from $5.5 million in the prior-year period.
• The Company’s Board of Directors declared a cash dividend in the amount of $0.03 per share on all shares of the Company’s common stock outstanding and of record as of the close of business on March 31, 2011, to be paid on or about April 8, 2011.
• Balance sheet at February 28, 2011, included cash and cash equivalents and investments of $41.7 million; working capital of $37.4 million; no long-term debt; and stockholders’ equity of $56.7 million.

RAPID CITY, S.D.-- National American University Holdings, Inc. (the “Company”) (NASDAQ:NAUH - News), which through its wholly owned subsidiary operates National American University (“NAU”), a regionally accredited, proprietary, multi-campus institution of higher learning, today reported its unaudited financial results for its FY 2011 third quarter and nine months ended February 28, 2011.

The Company operates in two business segments: NAU, which consists of the undergraduate and graduate education programs and contributes the primary portion of the Company’s revenue; and ownership in multiple apartments and condominium complexes from which it derives sales and rental income.

Ronald L. Shape, Ed.D., Chief Executive Officer of the Company, commented, “We are very pleased with NAU’s strong 24.3% enrollment growth during our fiscal 2011 third quarter. Due to the holiday break in December and January, winter terms generally have lower enrollments and, as a result, revenues. Despite this seasonality, NAU’s 2010-2011 winter term revenues and enrollment both saw healthy growth from the prior year as a result of expansion and growth in operations. We continue to move forward on our strategic growth initiatives, including continued expansion of the Austin, Texas, campus, multiple nursing programs, and several hybrid learning centers in Colorado, Kansas, Minnesota, Missouri, Nebraska, Oklahoma, and Texas. We plan to continue leveraging the Company’s strong free cash flow and balance sheet with this kind of continued investment in NAU’s existing programs and locations, in addition to expanding to new markets and growing its affiliate relationships.”

Student Enrollment

Total NAU student head count for the winter term of 2010-2011 increased 24.3% to a record 9,930 students, up from 7,989 in the last winter term. Students enrolled in 88,830 credit hours compared to 72,424 credit hours in the winter term of last year. One of the primary reasons for this enrollment increase is NAU's successful execution of its strategic plan, which includes the continued expansion and development of its physical locations and academic programs, an improved enrollment management system and recruitment processes, and the continuing economic downturn. The average age of NAU’s students remained at approximately 33 years, with a large majority focused on undergraduate studies.

The following is a summary of NAU’s student enrollment at February 28, 2011, and February 28, 2010, by degree type and by instructional delivery method:

				February 28, 2011									February 28, 2010
				No. of Students			% of Total						No. of Students			% of Total
Graduate				393				4.0	%				323				4.0	%
Undergraduate				9,537				96.0	%				7,666				96.0	%
Total				9,930				100.0	%				7,989				100.0	%
				February 28, 2011									February 28, 2010
				No. of Students			% of Total						No. of Students			% of Total
Online				4,624				46.6	%				3,198				40.0	%
On-Campus				3,619				36.4	%				3,667				45.9	%
Hybrid				1,687				17.0	%				1,124				14.1	%
Total				9,930				100.0	%				7,989				100.0	%

The shift from on-campus enrollment to more online and hybrid learning is expected to continue as NAU executes its strategic plan. The flexibility and support options available to students taking online and hybrid learning offerings continue to benefit NAU’s student population.

FY 2011 Third Quarter Financial Results

• The Company’s revenues for the three months ended February 28, 2011, increased 17.5% to $27.7 million from $23.6 million for the same period last year. As a result of the increase in enrollment, the academic segment’s total revenue for the three months ended February 28, 2011, increased 19.9% to $27.5 million from $22.9 million for the prior-year period.
• Educational services expense, which specifically relates to the academic segment, for the three months ended February 28, 2011, was $5.6 million, or 20.4% of the academic segment’s total revenue, compared to $5.4 million, or 23.7%, for the three months ended February 28, 2010. This percentage decrease was primarily a result of continued economies of scale being realized through significant enrollment growth.
• During the FY 2011 third quarter, the Company’s selling, general and administrative (SG&A) expenses increased 21.0% to $15.3 million from $12.6 million in the prior-year period. This increase was primarily due to increased spending in business expansion and development, which is consistent with NAU’s strategic plan. The Company spent an additional $2.0 million, compared to the amount spent during the FY 2010 third quarter, in development of new campuses and academic programming.
• The Company’s income before non-controlling interest and taxes for the three months ended February 28, 2011, increased 32.0% to $6.3 million from $4.8 million for the same period last year, of which the academic segment increased 30.5% to $6.4 million from $4.9 million for the three months ended February 28, 2010.
• Net income attributable to the Company for the fiscal 2011 third quarter was $3.9 million, or $0.14 per diluted share based on 26.8 million shares outstanding, compared to $3.0 million, or $0.08 per diluted share, in the prior-year period.
• The Company’s EBITDA for the third quarter of FY 2011 increased 28.7% to $7.0 million from $5.5 million in the prior-year period. A table reconciling EBITDA to net income can be found at the end of this release.

FY 2011 Nine Months Financial Results

• The Company’s revenues for the nine months ended February 28, 2011, increased 22.4% to $78.7 million from $64.3 million for the same period last year. As a result of the increase in enrollment, the academic segment’s total revenue for the period increased 23.6% to $77.8 million from $62.9 million for the nine months ended February 28, 2011. The Company attributes the growth in enrollment to its investment in continued geographic and programmatic expansion, new program development, and retention initiatives with current student enrollments.
• NAU’s educational services expense for the nine months ended February 28, 2011, was $16.4 million, or 21.1% of the academic segment’s total revenue, compared to $15.2 million, or 24.1%, for the nine months ended February 28, 2010.

• During the first nine months of FY 2011, the Company’s SG&A expenses increased 39.2% to $47.1 million from $33.8 million in the prior-year period. Of the total increase, the Company spent an additional $5.3 million in development of new campuses and academic programming over the prior year. The Company also paid $3.2 million in legal fees, including fees related to its continued cooperation with the U.S. Senate Committee on Health, Education, Labor and Pensions relating to the Committee’s ongoing hearings relating to proprietary colleges receiving Title IV student financial aid.

• The Company also incurred higher SG&A expenses as a result of increases in spending for admissions staffing and marketing, additional accrual for a new employment contract with the Company’s CEO, and additional corporate overhead resulting from operating as a public company.
• The Company’s income before non-controlling interest and taxes for the nine months ended February 28, 2011, was $13.1 million, compared to $13.2 million for the same period last year and of which the academic segment decreased 1.7% to $13.5 million from $13.8 million for the nine months ended February 28, 2011.
• Net income attributable to the Company during the first nine months of fiscal 2011 was $8.0 million, or $0.30 per diluted share based on 27.0 million shares outstanding, compared to $7.9 million, or $0.29 per diluted share, in the prior-year period.
• The Company’s EBITDA for the first nine months of fiscal 2011 was $15.1 million, compared to $15.2 million in the prior-year period. The decrease in EBITDA can be attributed to the previously mentioned increase in SG&A expenses. A table reconciling EBITDA to net income can be found at the end of this release.

Balance Sheet Highlights

As of February 28, 2011, the Company had cash and cash equivalents and investments of $41.7 million; working capital of $37.4 million; no long-term debt; and stockholders’ equity of $56.7 million; compared to cash and cash equivalents and investments of $19.8 million; working capital of $4.4 million; no long-term debt; and stockholders’ equity of $21.4 million at May 31, 2010.

Update on Stock Repurchase Plan

On February 3, 2011, the Company announced that its Board of Directors had authorized the establishment of a stock repurchase program for the Company to purchase up to 1,000,000 shares of common stock in both open market and privately negotiated transactions. By the end of the third quarter, the Company had repurchased 1,000,000 shares of common stock at an average stock price of $7.51. Having reached the 1,000,000-share limit approved by the Board, the program has effectively expired.

About National American University Holdings, Inc.

National American University Holdings, Inc., through its wholly owned subsidiary, operates National American University, a regionally accredited, proprietary, multi-campus institution of higher learning offering Associate, Bachelor’s, and Master’s degree programs in health care and business-related disciplines. Accredited by The Higher Learning Commission and a member of the North Central Association of Colleges and Schools, National American University has been providing technical and professional career education since 1941. NAU opened its first campus in Rapid City, South Dakota, and has since grown to multiple locations throughout the central United States. In 1998, National American University began offering online courses. Today, NAU offers degree programs in traditional, online, and hybrid formats, which provides students increased flexibility to take courses at times and places convenient to their busy lifestyles.

Forward Looking Statements

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the Company's business. Statements made in this release, other than those concerning historical financial information, may be considered forward-looking statements, which speak only as of the date of this release and are based on current beliefs and expectations and involve a number of assumptions. These forward-looking statements include outlooks or expectations for earnings, revenues, expenses or other future financial or business performance, strategies or expectations, or the impact of legal or regulatory matters on business, results of operations or financial condition. Specifically, forward-looking statements may include statements relating to the future financial performance of the Company; the ability to continue to receive Title IV funds; the growth of the market for the Company’s services; expansion plans and opportunities; consolidation in the market for the Company’s services generally; and other statements preceded by, followed by or that include the words “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “target” or similar expressions. These forward-looking statements involve a number of known and unknown risks and uncertainties or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by those forward-looking statements. Other factors that could cause the Company’s results to differ materially from those contained in its forward-looking statements are included under, among others, the heading “Risk Factors” in the Company’s Annual Report on Form 10-K filed on August 18, 2010 and in its other filings with the Securities and Exchange Commission. The Company assumes no obligation to update the information contained in this release.

NATIONAL AMERICAN UNIVERSITY HOLDINGS, INC.
AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS AND NINE MONTHS ENDED FEBRUARY 28, 2011 AND
FEBRUARY 28, 2010
(In thousands except per share data)
		Three Months Ended									Nine Months Ended
		February 28,									February 28,
		2011				2010					2011				2010
REVENUE:
Academic revenue		$	26,119			$	21,685				$	73,199			$	59,021
Auxiliary revenue			1,370				1,249					4,583				3,893
Rental income — apartments			244				220					739				703
Condominium sales			0				456					224				694
Total revenue			27,733				23,610					78,745				64,311
OPERATING EXPENSES:
Cost of educational services			5,609				5,428					16,391				15,180
Selling, general and administrative			15,272				12,623					47,062				33,819
Auxiliary expense			579				418					2,119				1,454
Cost of condominium sales			0				398					193				564
Loss on disposition of property			19				0					70				0
Total operating expenses			21,479				18,867					65,835				51,017
OPERATING INCOME			6,254				4,743					12,910				13,294
OTHER INCOME (EXPENSE):
Interest income			38				41					112				160
Interest expense			0				(125	)				0				(440	)
Other income — net			25				128					96				176
Total other income (expense)			63				44					208				(104	)
INCOME BEFORE INCOME TAXES			6,317				4,787					13,118				13,190
INCOME TAX EXPENSE			(2,438	)			(1,785	)				(5,134	)			(5,241	)
NET INCOME			3,879				3,002					7,984				7,949
NET (INCOME) LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST			(12	)			(30	)				(31	)			(14	)
NET INCOME ATTRIBUTABLE TO NATIONAL AMERICAN UNIVERSITY HOLDINGS, INC. AND SUBSIDIARIES			3,867				2,972					7,953				7,935
OTHER COMPREHENSIVE INCOME —
Unrealized gains (losses) on investments			(28	)			(23	)				(29	)			(14	)
COMPREHENSIVE INCOME ATTRIBUTABLE TO NATIONAL AMERICAN UNIVERSITY HOLDINGS, INC.		$	3,839			$	2,949				$	7,924			$	7,921
(continued)

NATIONAL AMERICAN UNIVERSITY HOLDINGS, INC.
AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS AND NINE MONTHS ENDED FEBRUARY 28, 2011 AND
FEBRUARY 28, 2010
(In thousands except share and per share data)
		Three Months Ended							Nine Months Ended
		February 28,							February 28,
		2011			2010				2011			2010
Basic EPS
Class A
Distributed earnings		$	-		$	17.30			$	-		$	34.61
Undistributed earnings		$	-		$	8.16			$	-		$	37.17
Total		$	-		$	25.46			$	-		$	71.78
Common
Distributed earnings		$	0.03		$	0.03			$	0.09		$	0.06
Undistributed earnings		$	0.12		$	0.05			$	0.21		$	0.24
Total		$	0.15		$	0.08			$	0.30		$	0.30
Diluted EPS
Class A
Distributed earnings		$	-		$	17.30			$	-		$	34.61
Undistributed earnings		$	-		$	7.66			$	-		$	36.19
Total		$	-		$	24.96			$	-		$	70.80
Common
Distributed earnings		$	0.03		$	0.03			$	0.09		$	0.06
Undistributed earnings		$	0.11		$	0.05			$	0.21		$	0.23
Total		$	0.14		$	0.08			$	0.30		$	0.29
Weighted Average Shares outstanding
Basic EPS
Class A			-			100,000				-			100,000
Common			26,122,047			5,018,605				26,202,893			1,801,551
Diluted EPS
Class A			-			100,000							100,000
Common			26,846,982			6,370,298				26,956,077			2,276,277
(concluded)

NATIONAL AMERICAN UNIVERSITY HOLDINGS, INC.
AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET AS OF
FEBRUARY 28, 2011 AND AUDITED CONDENSED CONSOLIDATED BALANCE
SHEET AS OF MAY 31, 2010
(In thousands except share and per share data)
		February 28,					May 31,
		2011					2010
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	30,640				$	8,695
Short term investments			11,095					11,109
Student receivables — net of allowance of $268 and $203 at February 28, 2011 and May 31, 2010, respectively			2,408					1,823
Other receivables			1,494					952
Bookstore inventory			1,032					920
Deferred income taxes			1,641					1,574
Prepaid and other current assets			1,090					1,759
Total current assets			49,400					26,832
Total Property and Equipment - Net			19,550					15,881
OTHER ASSETS:
Condominium inventory			2,852					3,046
Land held for future development			312					312
Course development — net of accumulated amortization of $1,350 and $1,149 at February 28, 2011 and May 31, 2010, respectively			899					768
Other			789					447
			4,852					4,573
TOTAL		$	73,802				$	47,286
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable		$	3,648				$	4,315
Dividends payable			828					11,116
Student accounts payable			650					322
Deferred income			470					305
Income tax payable			1,043					231
Accrued and other liabilities			5,345					6,109
Total current liabilities			11,984					22,398
DEFERRED INCOME TAXES			1,370					1,151
OTHER LONG-TERM LIABILITIES			3,778					2,380
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock (50,000,000 authorized; 27,438,040 issued and 26,438,040 outstanding as of February 28, 2011; 21,819,653 issued and outstanding as of May 31, 2010)			3					2
Additional paid-in capital			56,337					19,165
Retained earnings			8,032					2,389
Treasury stock, at cost (1,000,000 shares at February 28, 2011)			(7,505	)				0
Accumulated other comprehensive income			67					96
Total National American University Holdings, Inc. stockholders' equity			56,934					21,652
Non-controlling interest			(264	)				(295	)
Total equity			56,670					21,357
TOTAL		$	73,802				$	47,286

The following table provides a reconciliation of net income attributable to the Company to EBITDA:

Consists of income attributable to the Company, less income from non-controlling interest, plus loss from non-controlling interest, minus interest income, plus interest expense, plus income taxes, plus depreciation and amortization. The Company uses EBITDA as a measure of operating performance. However, EBITDA is not a recognized measurement under U.S. generally accepted accounting principles, or GAAP, and when analyzing its operating performance, investors should use EBITDA in addition to, and not as an alternative for, income as determined in accordance with GAAP. Because not all companies use identical calculations, its presentation of EBITDA may not be comparable to similarly titled measures of other companies and is therefore limited as a comparative measure. Furthermore, as an analytical tool, EBITDA has additional limitations, including that (a) it is not intended to be a measure of free cash flow, as it does not consider certain cash requirements such as tax payments; (b) it does not reflect changes in, or cash requirements for, its working capital needs; and (c) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized often will have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements, or future requirements for capital expenditures or contractual commitments. To compensate for these limitations, the Company evaluates its profitability by considering the economic effect of the excluded expense items independently as well as in connection with its analysis of cash flows from operations and through the use of other financial measures.

The Company believes EBITDA is useful to an investor in evaluating its operating performance because it is widely used to measure a company’s operating performance without regard to certain non-cash expenses (such as depreciation and amortization) and expenses that are not reflective of its core operating results over time. The Company believes EBITDA presents a meaningful measure of corporate performance exclusive of its capital structure, the method by which assets were acquired and non-cash charges, and provides us with additional useful information to measure its performance on a consistent basis, particularly with respect to changes in performance from period to period.