Montgomery Academy Inc

Montgomery Academy Inc is burning the cushion faster than the 7-month buffer suggests. Expenses are outpacing revenue 7.3% vs 2.1% per year over three years, and the latest operating margin is -9.2% on a 92% tuition-dependent revenue mix. Covering the deficit at today's rate, reserves would last roughly 6.7 more years — the full budget, by contrast, is covered for about 7 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: -0.4 / 10, distressed.

Montgomery Academy Inc operates at 92% tuition dependency — among the most tuition-reliant 7% of peers in its cohort. A soft admissions year would flow straight to operations.

Montgomery Academy Inc reported $12.6M in revenue against $13.8M in expenses in fiscal year 2023, the most recent filing on record. Net assets stood at $8.5M — about 0.62x annual operating expense.

Operating margin landed at -9.2%, with 92.2% of revenue coming from tuition. Among same-size peers, that puts Montgomery Academy Inc at the p10 on operating margin.