Ataa Educational Co. — Interim / Quarterly Report 2023

Mar 7, 2023

Ataa Educational Co. announces its Interim Financial Results for the Period Ending on 2023-01-31 ( Six Months )

4292 · 07/03/2023 09:13:40 · Announcement #72273 · View on Saudi Exchange

Ataa Educational Co. announces its Interim Financial Results for the Period Ending on 2023-01-31 ( Six Months )

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	166,830	133,732	24.75	167,787	-0.57
Gross Profit (Loss)	36,487	25,453	43.35	49,966	-26.98
Operational Profit (Loss)	18,783	8,543	119.86	29,586	-36.51
Net Profit (Loss) after Zakat and Tax	9,552	1,012	843.87	21,061	-54.65
Total Comprehensive Income	9,552	1,012	843.87	21,061	-54.65
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	334,618	271,920	23.06
Gross Profit (Loss)	86,453	64,058	34.96
Operational Profit (Loss)	48,369	67,597	-28.45
Net Profit (Loss) after Zakat and Tax	30,612	52,426	-41.61
Total Comprehensive Income	30,612	52,426	-41.61
Total Share Holders Equity (after Deducting Minority Equity)	848,171	772,469	9.8
Profit (Loss) per Share	0.73	1.25
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 net income increase is due to:

1- An increase of the students’ number by 14% from 39.3 thousand to 44.9 thousand male / female students resulted in an income increase of 25% compared to last year, which is mainly due to the increase 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 Covid 19 pandemic, announced by the company then.

And this is despite the increase in operating costs by 21% due to the consolidation of the financial statements with the acquired Nabaa Educational Company, in addition to the costs resulting from the attendance of the preparatory and primary sections.

2- An increase in government subsidies revenues by 65% as a result of the increase in revenues received from government initiatives.

3- An increase in other revenues by 39% as a result of the attendance return 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 300% compared to last year as a

result of the company’s marketing campaign for the new academic year.

5- An increase in financing costs by 9% compared to last year due to the borrowing related to the acquiring of the Arab Group for Education and Training (AETG), 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 net income decrease is due to:

1- Revenue decreased by 0.6% due to granting additional discounts related to the process of collecting tuition fees.

2- An increase in operating expenses by 10% as a result of an increase in the salaries and wages by 22% compared to the previous quarter, due to the decrease in August salaries due to the dates of teachers’ return from their vacations, in addition to the acquisition of Nabaa Educational Company.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 net income decrease during the current period compared to the same corresponding period of last year is due to:

Calculating non-recurring gains in the same quarter of the previous year resulting from the acquisition of the Arab Group Company for Education and Training AETG (disclosure No. 11 in the financial statments) at a value of 38.1 million riyals. Excluding the effect of these gains, considering that they are non-recurring and not a result of activity, there is an income increase of the current period by

114% compared to the same period of the previous year, due to the following:

1- The increase of the students’ number by 14% from 39.3 thousand to 44.9 thousand male / female students resulted in revenue increase of 23% compared to last year, which is mainly due to the increase 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 as a result of the company raising tuition fees in addition to removing discounts related to distance learning that the company was granting during the repercussions of the Covid 19 pandemic (announced by the company then).

This is despite the increase in operating costs by 21% due to the consolidation of the financial statements with the acquired Nabaa Educational Company, in addition to the costs resulting from the attendance of the preparatory and primary departments.

2- An increase in government subsidies revenues by 96% as a result of the increase in subsidies received from government initiatives.

3- An increase in other revenues by 33% as a result of the attendance return 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 364% compared to last year as a result of the company's marketing campaign for the new academic year.

5- An increase in financing costs by 13% compared to last year due to the borrowing related to the acquiring of the Arab Group for Education (AETG) 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. 17 in the financial statements.Additional Information We would like to draw the attention of our honored shareholders that the financial statements for the current half ending on January 31st, 2023 will be available on the Website of Ataa Educational Company on the following link ataa.sa after sending it to the competent authorities. The company would also like to draw the attention of financial analysts and investors to send their inquiries about the results of the mid-term financials to the company’s e-mail ir@ataa.sa and that is within 10 days from the

date of publication of the financial statements.

Allah grants success.

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