Ataa Educational Co. — Interim / Quarterly Report 2022

Jun 9, 2022

Ataa Educational Co. announces its Interim Financial Results for the Period Ending on 2022-04-30 ( Nine Months )

4292 · 09/06/2022 08:00:08 · Announcement #68743 · View on Saudi Exchange

Ataa Educational Co. announces its Interim Financial Results for the Period Ending on 2022-04-30 ( Nine Months )

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	138,755	62,532	121.89	133,984	3.56
Gross Profit (Loss)	20,049	15,620	28.35	23,928	-16.21
Operational Profit (Loss)	14,082	11,586	21.54	11,867	18.66
Net Profit (Loss) after Zakat and Tax	3,610	6,343	-43.09	1,476	144.58
Total Comprehensive Income	3,610	6,598	-45.29	1,476	144.58
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	413,167	186,946	121.01
Gross Profit (Loss)	83,734	45,992	82.06
Operational Profit (Loss)	51,901	33,068	56.95
Net Profit (Loss) after Zakat and Tax	71,338	17,650	304.18
Total Comprehensive Income	71,338	18,313	289.55
Total Share Holders Equity (after Deducting Minority Equity)	776,079	727,362	6.7
Profit (Loss) per Share	1.78	0.44
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	The decrease in net profit for current quarter compared to the same quarter of the previous year is due to:

1- Revenues has been increased by 122% compared to last year, facing an increase in the operational cost by 153% as a result of adding the acquired companies (Al Wasat National Schools Company for Education and Training – Al Elm International Schools Company - The Arabian Group for Education and Training Holding Company) and the return of the physical attendance of students, which resulted in an increase in the number of students by 15 thousand Student compared to last year, It is worth noting that the increase in revenues by a percentage less than the increase in costs is due to the nature of the revenue proving of the Al-Faisal International Academy for Training Institutes Company (Training Sector) affiliated to the acquired Arabian group this year, due to the different nature of the training sector’s revenue proof in its revenues, which are concentrated in the summer months (May, June, July, and August), which resulted in losses in this sector in the current financial period, and the increase in the minimum wage for Saudi teachers.

2- Administrative expenses has been increased by 117% compared to last year

This is as a result of the consolidation of the financial statements with the acquired companies this year (Al Wasat National Schools for Education and Training Company - Al Elm International Schools Company - The Arabian Group for Education and Training Holding Company).

3- The increase in financing costs by 101% compared to last year due to the borrowing related to the purchasing of Al-Elm International Schools, the Arabian Group for Education and Training, as well as the consolidation of the financial statements with them.The reason of the increase (decrease) in the net profit during the current quarter compared to the previous period of the current year is The increase in net profit during the current quarter compared to the previous quarter is due to:

1- The increase in revenues by 4% due to the increase in the number of students during the third quarter.

2- Other revenues have been increased by 70% due to the increase in revenues from government initiatives in the current quarter.The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is The increase in net profit for current period compared to the same period of the previous year is due to:

1- Revenues has been increased by 121% compared to last year as a result of an increase in the number of students by 62% from 25,000 to 40,500 students resulting from the acquisition of (Al Wasat National Schools for Education and Training Company - Al Elm International Schools Company – The Arabian Group for Education and Training Holding Company) As well as the physical attendance return to study for the intermediate and secondary stages and the consequent cancellation of distance education discounts for those two stages, despite the high operational cost by 134%

2- Other Revenue increased by 233%, due to the consolidation of the financial statements with the acquired companies.

3- Non-recurring profits resulting from the acquisition of The Arabian Group for Education and Training Company, amounting to 52.5 million Saudi Riyals

It is worth noting that adjustments may occur to these gains based on the fair values that will be determined by the purchase price allocation study

(For more details, please refer to disclosure No. 11 in the financial statements)Statement of the type of external auditor's report Unmodified conclusionModification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion There is no notesReclassification of Comparison Items There is no notesAdditional Information We would like to draw the attention of our valued shareholders that the interim condensed consolidated financial statements for the current period ending on April 30, 2022 will be available on Ataa Educational Company website

at the following link

ataa.sa

After sending it to the competent authorities, the company also wishes to draw the attention of the financial analysts and investors to send their inquiries about the results of the midterm business to the company's email

ir@ataa.sa

within 10 days from the date of publishing the financial statements.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.