Orangeburg Preparatory Schools

Orangeburg Preparatory Schools is burning the cushion faster than the 5-month buffer suggests. Expenses are outpacing revenue 5.5% vs -1.2% per year over three years, and the latest operating margin is -9.0% on a 91% tuition-dependent revenue mix. Covering the deficit at today's rate, reserves would last roughly 4.8 more years — the full budget, by contrast, is covered for about 5 months if every revenue line stopped. The board conversation here is the recovery plan for the operating model and the timeline to break-even. NACUBO Composite Financial Index: -0.8 / 10, distressed.

Orangeburg Preparatory Schools holds only 5 months of operating expense in reserve — a thin runway that warrants understanding before walking into a campus visit.

Orangeburg Preparatory Schools reported $5.0M in revenue against $5.4M in expenses in fiscal year 2023, the most recent filing on record. Net assets stood at $2.3M — about 0.43x annual operating expense.

Operating margin landed at -9.0%, with 91.3% of revenue coming from tuition. Among same-size peers, that puts Orangeburg Preparatory Schools at the p21 on operating margin.