The Academy at Ocean Reef

The Academy at Ocean Reef is burning the cushion faster than the 10-month buffer suggests. Expenses are outpacing revenue 10.6% vs 5.4% per year over three years, and the latest operating margin is -7.7% on a 49% tuition-dependent revenue mix. Covering the deficit at today's rate, it would take more than a decade to exhaust reserves — the full budget, by contrast, is covered for about 10 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: 1.1 / 10, watch.

The Academy at Ocean Reef runs only 49% tuition-dependent — unusually diversified for an independent school. Endowment payout and contributions carry meaningful weight in the operating budget.

The Academy at Ocean Reef reported $2.9M in revenue against $3.1M in expenses in fiscal year 2023, the most recent filing on record. Net assets stood at $2.7M — about 0.87x annual operating expense.

Operating margin landed at -7.7%, with 49.1% of revenue coming from tuition. Among same-size peers, that puts The Academy at Ocean Reef at the p21 on operating margin.