Graded – The American School of São Paulo closed FY2019-20 with a positive EBITDA but an operating result of R$ -804K. The outcome was better than forecast, given an unfavorable exchange rate at the start of the school year that had resulted in an overage. Higher than budgeted enrollment proved to be a key mitigating factor, resulting in increased income. Successful contract renegotiation and the Graded Leadership Team’s effective fiscal management helped to counter the stronger USD.

As expected, the COVID-19 pandemic adversely impacted the Brazilian economy. Consequently, some of the school’s families were granted tuition payment deferrals, resulting in a lower than projected cash flow. When the Graded campus closed on March 18, some savings in unfixed costs were achieved, and a tuition discount was offered to all families. Graciously, 44% of our families made the decision to return this discount in the form of a donation to the Graded Annual Fund’s Community Financial Aid Fund and/or the Graded Scholar Program initiative. Their contributions assisted those families undergoing financial hardship. Once more, the Graded community demonstrated its strength and unity.

Operational reserves of R$49.7M in cash, amounting to 4.25 times monthly income, signals positive news. This amount exceeds the three-month revenue target established by the Board of Directors. These operating reserves will enable Graded to weather the crisis and continue to recruit and retain first-class educators. The solid reserves have also allowed us to balance the diversity of incoming students and remain a truly international American school.

Infrastructural improvements this year included a new Upper School Library, Lower School Innovation Lab and Hub, Learning Lab, and Middle School Greens. A new access control system enhanced campus security. The Academic Infrastructure Improvement Project was completed in June. We are looking forward to the further support of our community as we plan renovations of our dining centers and auditorium.

Graded’s Endowment Funds (Excellence in Teaching, Graded Scholar Program, and Janet Sallouti Alumni Financial Aid Endowment) closed the year with a final balance of R$32.3M+. This year, the Graded Scholar Program supported eleven full-tuition scholarship students (of whom five graduated). We will welcome two new students in 2020-2021.

I would like to thank my colleagues (new and old friends), members of the Board and Finance Committee, for their expertise, advice, and support throughout this year.

Best regards,

Gustavo Junqueira
Treasurer of the Board



This financial report was prepared and audited by Ernst & Young and represents the fiscal year ending June 30, 2020. Graded would like to thank members of the Finance Committee for their expertise, advice, and support throughout the intensive review process. Members included: Fabio Coelho, Marc Menden, Luiz Galeazzi ’81, and Gustavo Diniz Junqueira. Ex Officio members: Superintendent Richard Boerner and Director of Business and Operations Elaine Gabor.