Ataa Educational Co. — Interim / Quarterly Report 2023

Jun 7, 2023

Ataa Educational Co. announces its Interim Financial Results for the Period Ending on 2023-04-30 ( Nine Months )

4292 · 07/06/2023 16:14:07 · Announcement #74238 · View on Saudi Exchange

Ataa Educational Co. announces its Interim Financial Results for the Period Ending on 2023-04-30 ( Nine Months )

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	156,336	137,925	13.35	166,830	-6.29
Gross Profit (Loss)	36,071	23,715	52.1	36,487	-1.14
Operational Profit (Loss)	20,650	9,489	117.62	18,783	9.94
Net Profit (Loss) after Zakat and Tax	10,726	3,146	240.94	9,552	12.29
Total Comprehensive Income	10,726	3,146	240.94	9,552	12.29
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	490,954	409,845	19.79
Gross Profit (Loss)	122,524	87,773	39.59
Operational Profit (Loss)	69,019	77,086	-10.46
Net Profit (Loss) after Zakat and Tax	41,339	55,572	-25.61
Total Comprehensive Income	41,339	55,572	-25.61
Total Share Holders Equity (after Deducting Minority Equity)	858,897	776,079	10.67
Profit (Loss) per Share	0.98	1.32
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 reason for the increase in net profit during the current quarter compared to the same quarter of last year is due to:

1. The increase in the number of students by 12% from 40.5 thousand to 45.2 thousand male / female students resulted in an increase in revenues by 13% compared to last year, which is mainly due to the rise in the number of students enrolled in the schools affiliated to the company, and the acquisition of Nabaa Educational Company.

In addition to the increase in tuition fees compared to the previous year, which included exceptional discounts related to the repercussions of the Corona pandemic, which the company announced at the time

And this is despite the increase in operating costs by 4% and the return on consolidating the financial statements with the acquired Nabaa Educational Company, in addition to the costs resulting from the attendance of the preparatory and primary schools.

2. An increase in other revenues by 53% as a result of the resumption of the physical attendance of students in the primary grades and the consolidation of the financial statements with the acquired Nabaa Educational Company.

3. Marketing expenses increased by 328% compared to last year due to the company's marketing campaign for the new year.

4. An increase in financing costs by 35% compared to last year due to the borrowing related to the purchase of the Arab Group for Education and Training, in addition to the increase in SIBOR prices.The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is The reason for the rise in net profit during the current quarter compared to the last quarter is due to:

An increase in other revenues by 59%, due to the accounting treatment of settling the termination of lease contracts for branches in the employment sector (Standard 16), as well as a decrease in operating costs by 7.6%, due to a decrease in operating costs in the employment sector by 41%. This is despite the decline in revenues by 6.3% due to the granting of additional discounts related to collecting tuition fees-measures.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 reason for the decrease in net profit during the current period compared to the same period last year is due to:

Evidence of non-recurring gains in the similar period resulting from the acquisition of the Arab Group Company for Education and Training (Note No. 12 in the Financial statements) at a value of 38.1 million riyals.

And by excluding the effect of these gains, considering that they are non-recurring and not a result of the activity, there will be an increase in the net profit for the current period by 155% compared to the similar period of the last year due to the following:

1. An increase in the number of students by 12% from 40.5 thousand to 45.2 thousand male / female students, which resulted in an increase in revenues by 20% compared to the same period, which is mainly due to the rise in the number of students enrolled in the schools affiliated to the company, and the acquisition of Nabaa Educational Company.

Moreover, the tuition fees were increased compared to the previous year due to the company's action of raising tuition fees and canceling the discounts related to online education that the company granted during the Corona pandemic (announced by the company at the time).

This is despite the increase in operating costs by 15% and the return on consolidating the financial statements with the acquired Nabaa Educational Company, in addition to the costs resulting from the physical attendance of the preparatory and primary students in the schools.

2. An increase in revenues from the government grant by 26% due to increased payments received from government initiatives.

3. An increase in other revenues by 40% as a result of the physical attendance of students in the primary grades and the consolidation of the financial statements with the acquired Nabaa Educational Company.

4. An increase in marketing expenses by 350% compared to last year resulted from the company's campaign for the new school year.

5. An increase in financing costs by 21% compared to last year due to the borrowing related to the purchase of the Arab Group for Education and Training, in addition to the increase in SIBOR prices.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 Reclassification of some comparative figures:

Some elements of the financial statements position and income statement have been reclassified.

For more details, please refer to disclosure No. 18 in the financial statements.Additional 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, 2023 will be available on Ataa Educational Company website

at the following link https://ataa.sa. The company also wishes to draw the attention of financial analysts and investors to send their inquiries about the results of the business to the company's email: ir@ataa.sa, within 10 days from the date of publication of 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.