Graham Holdings Company Reports Second Quarter Earnings
Division Operating Results
Revenue for the second quarter of 2024 was
Revenue for the first six months of 2024 was
Acquisitions and Dispositions of Businesses
There were no significant business acquisitions or dispositions during the first six months of 2024.
Debt,
At
Overall, the Company recognized
Common Stock Repurchases
During the second quarter and first six months of 2024, the Company purchased a total of 40,180 and 68,786 shares, respectively, of its Class B common stock at a cost of
Mandatorily Redeemable Noncontrolling Interest
The Company recorded interest expense of
Overall Company Results
The Company reported a net loss attributable to common shares of
The results for the second quarter and first six months of 2024 and 2023 were affected by a number of items as described in the Non-GAAP Financial Information schedule attached to this release. Excluding these items, net income attributable to common shares was
* * * * * * * * * * * *
Forward-Looking Statements
All public statements made by the Company and its representatives that are not statements of historical fact, including certain statements in this press release, in the Company’s Annual Report on Form 10-K and in the Company’s 2023 Annual Report to Stockholders, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations, forecasts, and assumptions by the Company’s management and involve a number of risks, uncertainties, and other factors that could cause actual results to differ from those stated, including, without limitation, comments about expectations related to acquisitions or dispositions or related business activities, the Company’s business strategies and objectives, the prospects for growth in the Company’s various business operations, the Company’s future financial performance, and the risks and uncertainties described in Item 1A of the Company’s Annual Report on Form 10-K. Accordingly, undue reliance should not be placed on any forward-looking statement made by or on behalf of the Company. The Company assumes no obligation to update any forward-looking statement after the date on which such statement is made, even if new information subsequently becomes available.
|
|||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||
(Unaudited) |
|||||||||
|
|
|
|||||||
|
Three Months Ended |
|
|||||||
|
|
% |
|||||||
(in thousands, except per share amounts) |
2024 |
|
2023 |
Change |
|||||
Operating revenues |
$ |
1,185,280 |
|
|
$ |
1,104,999 |
|
7 |
|
Operating expenses |
|
1,100,851 |
|
|
|
1,012,537 |
|
9 |
|
Depreciation of property, plant and equipment |
|
22,173 |
|
|
|
21,103 |
|
5 |
|
Amortization of intangible assets |
|
10,058 |
|
|
|
13,304 |
|
(24 |
) |
Impairment of goodwill and other long-lived assets |
|
26,287 |
|
|
|
— |
|
— |
|
Operating income |
|
25,911 |
|
|
|
58,055 |
|
(55 |
) |
Equity in earnings (losses) of affiliates, net |
|
2,560 |
|
|
|
(6,115 |
) |
— |
|
Interest income |
|
2,111 |
|
|
|
1,548 |
|
36 |
|
Interest expense |
|
(91,383 |
) |
|
|
(11,774 |
) |
— |
|
Non-operating pension and postretirement benefit income, net |
|
24,655 |
|
|
|
29,815 |
|
(17 |
) |
Gain on marketable equity securities, net |
|
19,628 |
|
|
|
78,648 |
|
(75 |
) |
Other income, net |
|
1,791 |
|
|
|
15,794 |
|
(89 |
) |
(Loss) income before income taxes |
|
(14,727 |
) |
|
|
165,971 |
|
— |
|
Provision for income taxes |
|
4,100 |
|
|
|
41,800 |
|
(90 |
) |
Net (loss) income |
|
(18,827 |
) |
|
|
124,171 |
|
— |
|
Net income attributable to noncontrolling interests |
|
(2,213 |
) |
|
|
(1,383 |
) |
60 |
|
Net (Loss) Income Attributable to Graham Holdings Company Common Stockholders |
$ |
(21,040 |
) |
|
$ |
122,788 |
|
— |
|
Per Share Information Attributable to Graham Holdings Company Common Stockholders |
|
|
|
|
|||||
Basic net (loss) income per common share |
$ |
(4.79 |
) |
|
$ |
25.96 |
|
— |
|
Basic average number of common shares outstanding |
|
4,401 |
|
|
|
4,700 |
|
|
|
Diluted net (loss) income per common share |
$ |
(4.79 |
) |
|
$ |
25.89 |
|
— |
|
Diluted average number of common shares outstanding |
|
4,401 |
|
|
|
4,713 |
|
|
|
|||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||
(Unaudited) |
|||||||||
|
|
|
|||||||
|
Six Months Ended |
|
|||||||
|
|
% |
|||||||
(in thousands, except per share amounts) |
2024 |
|
2023 |
Change |
|||||
Operating revenues |
$ |
2,337,942 |
|
|
$ |
2,136,545 |
|
9 |
|
Operating expenses |
|
2,184,793 |
|
|
|
1,981,713 |
|
10 |
|
Depreciation of property, plant and equipment |
|
44,700 |
|
|
|
41,128 |
|
9 |
|
Amortization of intangible assets |
|
20,809 |
|
|
|
27,248 |
|
(24 |
) |
Impairment of goodwill and other long-lived assets |
|
26,287 |
|
|
|
745 |
|
— |
|
Operating income |
|
61,353 |
|
|
|
85,711 |
|
(28 |
) |
Equity in earnings (losses) of affiliates, net |
|
4,891 |
|
|
|
(1,454 |
) |
— |
|
Interest income |
|
4,289 |
|
|
|
2,752 |
|
56 |
|
Interest expense |
|
(110,711 |
) |
|
|
(26,068 |
) |
— |
|
Non-operating pension and postretirement benefit income, net |
|
67,072 |
|
|
|
61,660 |
|
9 |
|
Gain on marketable equity securities, net |
|
123,780 |
|
|
|
96,670 |
|
28 |
|
Other income, net |
|
3,438 |
|
|
|
18,877 |
|
(82 |
) |
Income before income taxes |
|
154,112 |
|
|
|
238,148 |
|
(35 |
) |
Provision for income taxes |
|
47,600 |
|
|
|
61,000 |
|
(22 |
) |
Net income |
|
106,512 |
|
|
|
177,148 |
|
(40 |
) |
Net income attributable to noncontrolling interests |
|
(3,172 |
) |
|
|
(2,088 |
) |
52 |
|
Net Income Attributable to Graham Holdings Company Common Stockholders |
$ |
103,340 |
|
|
$ |
175,060 |
|
(41 |
) |
Per Share Information Attributable to Graham Holdings Company Common Stockholders |
|
|
|
|
|||||
Basic net income per common share |
$ |
23.24 |
|
|
$ |
36.78 |
|
(37 |
) |
Basic average number of common shares outstanding |
|
4,416 |
|
|
|
4,729 |
|
|
|
Diluted net income per common share |
$ |
23.11 |
|
|
$ |
36.67 |
|
(37 |
) |
Diluted average number of common shares outstanding |
|
4,442 |
|
|
|
4,744 |
|
|
|
||||||||||||||||||||||
BUSINESS DIVISION INFORMATION |
||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended |
|
|
|
Six Months Ended |
|
|
||||||||||||||
|
|
|
|
% |
|
|
|
% |
||||||||||||||
(in thousands) |
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
|||||||||||
Operating Revenues |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Education |
|
$ |
422,899 |
|
|
$ |
402,227 |
|
|
5 |
|
|
$ |
845,497 |
|
|
$ |
780,268 |
|
|
8 |
|
Television broadcasting |
|
|
115,478 |
|
|
|
118,829 |
|
|
(3 |
) |
|
|
228,536 |
|
|
|
231,706 |
|
|
(1 |
) |
Manufacturing |
|
|
103,626 |
|
|
|
120,082 |
|
|
(14 |
) |
|
|
205,529 |
|
|
|
234,666 |
|
|
(12 |
) |
Healthcare |
|
|
147,528 |
|
|
|
113,282 |
|
|
30 |
|
|
|
275,729 |
|
|
|
215,341 |
|
|
28 |
|
Automotive |
|
|
308,814 |
|
|
|
260,672 |
|
|
18 |
|
|
|
612,654 |
|
|
|
493,233 |
|
|
24 |
|
Other businesses |
|
|
86,991 |
|
|
|
90,449 |
|
|
(4 |
) |
|
|
170,289 |
|
|
|
182,457 |
|
|
(7 |
) |
Corporate office |
|
|
575 |
|
|
|
850 |
|
|
(32 |
) |
|
|
1,151 |
|
|
|
850 |
|
|
35 |
|
Intersegment elimination |
|
|
(631 |
) |
|
|
(1,392 |
) |
|
— |
|
|
|
(1,443 |
) |
|
|
(1,976 |
) |
|
— |
|
|
|
$ |
1,185,280 |
|
|
$ |
1,104,999 |
|
|
7 |
|
|
$ |
2,337,942 |
|
|
$ |
2,136,545 |
|
|
9 |
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Education |
|
$ |
387,622 |
|
|
$ |
372,111 |
|
|
4 |
|
|
$ |
779,633 |
|
|
$ |
727,112 |
|
|
7 |
|
Television broadcasting |
|
|
84,350 |
|
|
|
85,639 |
|
|
(2 |
) |
|
|
167,775 |
|
|
|
169,933 |
|
|
(1 |
) |
Manufacturing |
|
|
99,361 |
|
|
|
108,100 |
|
|
(8 |
) |
|
|
198,195 |
|
|
|
215,356 |
|
|
(8 |
) |
Healthcare |
|
|
134,791 |
|
|
|
104,905 |
|
|
28 |
|
|
|
256,901 |
|
|
|
204,028 |
|
|
26 |
|
Automotive |
|
|
298,611 |
|
|
|
251,212 |
|
|
19 |
|
|
|
592,799 |
|
|
|
472,930 |
|
|
25 |
|
Other businesses |
|
|
139,953 |
|
|
|
114,310 |
|
|
22 |
|
|
|
252,205 |
|
|
|
237,319 |
|
|
6 |
|
Corporate office |
|
|
15,312 |
|
|
|
12,059 |
|
|
27 |
|
|
|
30,524 |
|
|
|
26,132 |
|
|
17 |
|
Intersegment elimination |
|
|
(631 |
) |
|
|
(1,392 |
) |
|
— |
|
|
|
(1,443 |
) |
|
|
(1,976 |
) |
|
— |
|
|
|
$ |
1,159,369 |
|
|
$ |
1,046,944 |
|
|
11 |
|
|
$ |
2,276,589 |
|
|
$ |
2,050,834 |
|
|
11 |
|
Operating Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Education |
|
$ |
35,277 |
|
|
$ |
30,116 |
|
|
17 |
|
|
$ |
65,864 |
|
|
$ |
53,156 |
|
|
24 |
|
Television broadcasting |
|
|
31,128 |
|
|
|
33,190 |
|
|
(6 |
) |
|
|
60,761 |
|
|
|
61,773 |
|
|
(2 |
) |
Manufacturing |
|
|
4,265 |
|
|
|
11,982 |
|
|
(64 |
) |
|
|
7,334 |
|
|
|
19,310 |
|
|
(62 |
) |
Healthcare |
|
|
12,737 |
|
|
|
8,377 |
|
|
52 |
|
|
|
18,828 |
|
|
|
11,313 |
|
|
66 |
|
Automotive |
|
|
10,203 |
|
|
|
9,460 |
|
|
8 |
|
|
|
19,855 |
|
|
|
20,303 |
|
|
(2 |
) |
Other businesses |
|
|
(52,962 |
) |
|
|
(23,861 |
) |
|
— |
|
|
|
(81,916 |
) |
|
|
(54,862 |
) |
|
(49 |
) |
Corporate office |
|
|
(14,737 |
) |
|
|
(11,209 |
) |
|
(31 |
) |
|
|
(29,373 |
) |
|
|
(25,282 |
) |
|
(16 |
) |
|
|
$ |
25,911 |
|
|
$ |
58,055 |
|
|
(55 |
) |
|
$ |
61,353 |
|
|
$ |
85,711 |
|
|
(28 |
) |
Amortization of Intangible Assets and Impairment of |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Education |
|
$ |
2,872 |
|
|
$ |
3,984 |
|
|
(28 |
) |
|
$ |
5,846 |
|
|
$ |
8,400 |
|
|
(30 |
) |
Television broadcasting |
|
|
1,360 |
|
|
|
1,363 |
|
|
0 |
|
|
|
2,710 |
|
|
|
2,725 |
|
|
(1 |
) |
Manufacturing |
|
|
2,648 |
|
|
|
4,332 |
|
|
(39 |
) |
|
|
5,768 |
|
|
|
9,194 |
|
|
(37 |
) |
Healthcare |
|
|
598 |
|
|
|
882 |
|
|
(32 |
) |
|
|
1,234 |
|
|
|
1,836 |
|
|
(33 |
) |
Automotive |
|
|
5 |
|
|
|
— |
|
|
— |
|
|
|
5 |
|
|
|
— |
|
|
— |
|
Other businesses |
|
|
28,862 |
|
|
|
2,743 |
|
|
— |
|
|
|
31,533 |
|
|
|
5,838 |
|
|
— |
|
Corporate office |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
$ |
36,345 |
|
|
$ |
13,304 |
|
|
— |
|
|
$ |
47,096 |
|
|
$ |
27,993 |
|
|
68 |
|
Operating Income (Loss) before Amortization of Intangible Assets and Impairment of |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Education |
|
$ |
38,149 |
|
|
$ |
34,100 |
|
|
12 |
|
|
$ |
71,710 |
|
|
$ |
61,556 |
|
|
16 |
|
Television broadcasting |
|
|
32,488 |
|
|
|
34,553 |
|
|
(6 |
) |
|
|
63,471 |
|
|
|
64,498 |
|
|
(2 |
) |
Manufacturing |
|
|
6,913 |
|
|
|
16,314 |
|
|
(58 |
) |
|
|
13,102 |
|
|
|
28,504 |
|
|
(54 |
) |
Healthcare |
|
|
13,335 |
|
|
|
9,259 |
|
|
44 |
|
|
|
20,062 |
|
|
|
13,149 |
|
|
53 |
|
Automotive |
|
|
10,208 |
|
|
|
9,460 |
|
|
8 |
|
|
|
19,860 |
|
|
|
20,303 |
|
|
(2 |
) |
Other businesses |
|
|
(24,100 |
) |
|
|
(21,118 |
) |
|
(14 |
) |
|
|
(50,383 |
) |
|
|
(49,024 |
) |
|
(3 |
) |
Corporate office |
|
|
(14,737 |
) |
|
|
(11,209 |
) |
|
(31 |
) |
|
|
(29,373 |
) |
|
|
(25,282 |
) |
|
(16 |
) |
|
|
$ |
62,256 |
|
|
$ |
71,359 |
|
|
(13 |
) |
|
$ |
108,449 |
|
|
$ |
113,704 |
|
|
(5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended |
|
|
|
Six Months Ended |
|
|
||||||||||||||
|
|
|
|
% |
|
|
|
% |
||||||||||||||
(in thousands) |
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
|||||||||||
Depreciation |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Education |
|
$ |
8,855 |
|
|
$ |
9,460 |
|
|
(6 |
) |
|
$ |
18,160 |
|
|
$ |
18,428 |
|
|
(1 |
) |
Television broadcasting |
|
|
2,870 |
|
|
|
3,087 |
|
|
(7 |
) |
|
|
5,738 |
|
|
|
6,123 |
|
|
(6 |
) |
Manufacturing |
|
|
2,694 |
|
|
|
2,287 |
|
|
18 |
|
|
|
5,409 |
|
|
|
4,569 |
|
|
18 |
|
Healthcare |
|
|
1,683 |
|
|
|
1,287 |
|
|
31 |
|
|
|
3,277 |
|
|
|
2,391 |
|
|
37 |
|
Automotive |
|
|
1,716 |
|
|
|
1,148 |
|
|
49 |
|
|
|
3,429 |
|
|
|
2,261 |
|
|
52 |
|
Other businesses |
|
|
4,204 |
|
|
|
3,681 |
|
|
14 |
|
|
|
8,387 |
|
|
|
7,050 |
|
|
19 |
|
Corporate office |
|
|
151 |
|
|
|
153 |
|
|
(1 |
) |
|
|
300 |
|
|
|
306 |
|
|
(2 |
) |
|
|
$ |
22,173 |
|
|
$ |
21,103 |
|
|
5 |
|
|
$ |
44,700 |
|
|
$ |
41,128 |
|
|
9 |
|
Pension Expense |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Education |
|
$ |
4,712 |
|
|
$ |
2,256 |
|
|
— |
|
|
$ |
8,822 |
|
|
$ |
4,454 |
|
|
98 |
|
Television broadcasting |
|
|
1,416 |
|
|
|
805 |
|
|
76 |
|
|
|
3,055 |
|
|
|
1,665 |
|
|
83 |
|
Manufacturing |
|
|
292 |
|
|
|
281 |
|
|
4 |
|
|
|
919 |
|
|
|
556 |
|
|
65 |
|
Healthcare |
|
|
4,851 |
|
|
|
2,685 |
|
|
81 |
|
|
|
9,609 |
|
|
|
7,042 |
|
|
36 |
|
Automotive |
|
|
42 |
|
|
|
5 |
|
|
— |
|
|
|
57 |
|
|
|
10 |
|
|
— |
|
Other businesses |
|
|
1,674 |
|
|
|
613 |
|
|
— |
|
|
|
3,614 |
|
|
|
1,185 |
|
|
— |
|
Corporate office |
|
|
1,084 |
|
|
|
928 |
|
|
17 |
|
|
|
2,029 |
|
|
|
1,904 |
|
|
7 |
|
|
|
$ |
14,071 |
|
|
$ |
7,573 |
|
|
86 |
|
|
$ |
28,105 |
|
|
$ |
16,816 |
|
|
67 |
|
Adjusted Operating Cash Flow (non-GAAP)(1) |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Education |
|
$ |
51,716 |
|
|
$ |
45,816 |
|
|
13 |
|
|
$ |
98,692 |
|
|
$ |
84,438 |
|
|
17 |
|
Television broadcasting |
|
|
36,774 |
|
|
|
38,445 |
|
|
(4 |
) |
|
|
72,264 |
|
|
|
72,286 |
|
|
0 |
|
Manufacturing |
|
|
9,899 |
|
|
|
18,882 |
|
|
(48 |
) |
|
|
19,430 |
|
|
|
33,629 |
|
|
(42 |
) |
Healthcare |
|
|
19,869 |
|
|
|
13,231 |
|
|
50 |
|
|
|
32,948 |
|
|
|
22,582 |
|
|
46 |
|
Automotive |
|
|
11,966 |
|
|
|
10,613 |
|
|
13 |
|
|
|
23,346 |
|
|
|
22,574 |
|
|
3 |
|
Other businesses |
|
|
(18,222 |
) |
|
|
(16,824 |
) |
|
(8 |
) |
|
|
(38,382 |
) |
|
|
(40,789 |
) |
|
6 |
|
Corporate office |
|
|
(13,502 |
) |
|
|
(10,128 |
) |
|
(33 |
) |
|
|
(27,044 |
) |
|
|
(23,072 |
) |
|
(17 |
) |
|
|
$ |
98,500 |
|
|
$ |
100,035 |
|
|
(2 |
) |
|
$ |
181,254 |
|
|
$ |
171,648 |
|
|
6 |
|
____________
(1) |
Adjusted Operating Cash Flow (non-GAAP) is calculated as Operating Income (Loss) before Amortization of Intangible Assets and Impairment of |
|
||||||||||||||||||||||
EDUCATION DIVISION INFORMATION |
||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
Three Months Ended |
|
|
|
Six Months Ended |
|
|
||||||||||||||
|
|
|
|
% |
|
|
|
% |
||||||||||||||
(in thousands) |
|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
||||||||||
Operating Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Kaplan international |
|
$ |
267,026 |
|
|
$ |
237,663 |
|
|
12 |
|
|
$ |
536,824 |
|
|
$ |
464,739 |
|
|
16 |
|
Higher education |
|
|
81,041 |
|
|
|
90,291 |
|
|
(10 |
) |
|
|
161,163 |
|
|
|
168,632 |
|
|
(4 |
) |
Supplemental education |
|
|
73,133 |
|
|
|
74,616 |
|
|
(2 |
) |
|
|
145,255 |
|
|
|
148,203 |
|
|
(2 |
) |
Kaplan corporate and other |
|
|
2,993 |
|
|
|
2,887 |
|
|
4 |
|
|
|
5,581 |
|
|
|
5,259 |
|
|
6 |
|
Intersegment elimination |
|
|
(1,294 |
) |
|
|
(3,230 |
) |
|
— |
|
|
|
(3,326 |
) |
|
|
(6,565 |
) |
|
— |
|
|
|
$ |
422,899 |
|
|
$ |
402,227 |
|
|
5 |
|
|
$ |
845,497 |
|
|
$ |
780,268 |
|
|
8 |
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Kaplan international |
|
$ |
241,202 |
|
|
$ |
216,912 |
|
|
11 |
|
|
$ |
479,688 |
|
|
$ |
422,687 |
|
|
13 |
|
Higher education |
|
|
66,687 |
|
|
|
72,496 |
|
|
(8 |
) |
|
|
141,290 |
|
|
|
143,754 |
|
|
(2 |
) |
Supplemental education |
|
|
67,461 |
|
|
|
71,104 |
|
|
(5 |
) |
|
|
135,003 |
|
|
|
140,940 |
|
|
(4 |
) |
Kaplan corporate and other |
|
|
11,048 |
|
|
|
10,711 |
|
|
3 |
|
|
|
21,221 |
|
|
|
17,921 |
|
|
18 |
|
Amortization of intangible assets |
|
|
2,872 |
|
|
|
3,984 |
|
|
(28 |
) |
|
|
5,846 |
|
|
|
7,923 |
|
|
(26 |
) |
Impairment of long-lived assets |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
477 |
|
|
— |
|
Intersegment elimination |
|
|
(1,648 |
) |
|
|
(3,096 |
) |
|
— |
|
|
|
(3,415 |
) |
|
|
(6,590 |
) |
|
— |
|
|
|
$ |
387,622 |
|
|
$ |
372,111 |
|
|
4 |
|
|
$ |
779,633 |
|
|
$ |
727,112 |
|
|
7 |
|
Operating Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Kaplan international |
|
$ |
25,824 |
|
|
$ |
20,751 |
|
|
24 |
|
|
$ |
57,136 |
|
|
$ |
42,052 |
|
|
36 |
|
Higher education |
|
|
14,354 |
|
|
|
17,795 |
|
|
(19 |
) |
|
|
19,873 |
|
|
|
24,878 |
|
|
(20 |
) |
Supplemental education |
|
|
5,672 |
|
|
|
3,512 |
|
|
62 |
|
|
|
10,252 |
|
|
|
7,263 |
|
|
41 |
|
Kaplan corporate and other |
|
|
(8,055 |
) |
|
|
(7,824 |
) |
|
(3 |
) |
|
|
(15,640 |
) |
|
|
(12,662 |
) |
|
(24 |
) |
Amortization of intangible assets |
|
|
(2,872 |
) |
|
|
(3,984 |
) |
|
28 |
|
|
|
(5,846 |
) |
|
|
(7,923 |
) |
|
26 |
|
Impairment of long-lived assets |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(477 |
) |
|
— |
|
Intersegment elimination |
|
|
354 |
|
|
|
(134 |
) |
|
— |
|
|
|
89 |
|
|
|
25 |
|
|
— |
|
|
|
$ |
35,277 |
|
|
$ |
30,116 |
|
|
17 |
|
|
$ |
65,864 |
|
|
$ |
53,156 |
|
|
24 |
|
Operating Income (Loss) before Amortization of Intangible Assets and Impairment of Long-Lived Assets |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Kaplan international |
|
$ |
25,824 |
|
|
$ |
20,751 |
|
|
24 |
|
|
$ |
57,136 |
|
|
$ |
42,052 |
|
|
36 |
|
Higher education |
|
|
14,354 |
|
|
|
17,795 |
|
|
(19 |
) |
|
|
19,873 |
|
|
|
24,878 |
|
|
(20 |
) |
Supplemental education |
|
|
5,672 |
|
|
|
3,512 |
|
|
62 |
|
|
|
10,252 |
|
|
|
7,263 |
|
|
41 |
|
Kaplan corporate and other |
|
|
(8,055 |
) |
|
|
(7,824 |
) |
|
(3 |
) |
|
|
(15,640 |
) |
|
|
(12,662 |
) |
|
(24 |
) |
Intersegment elimination |
|
|
354 |
|
|
|
(134 |
) |
|
— |
|
|
|
89 |
|
|
|
25 |
|
|
— |
|
|
|
$ |
38,149 |
|
|
$ |
34,100 |
|
|
12 |
|
|
$ |
71,710 |
|
|
$ |
61,556 |
|
|
16 |
|
Depreciation |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Kaplan international |
|
$ |
7,177 |
|
|
$ |
6,903 |
|
|
4 |
|
|
$ |
14,533 |
|
|
$ |
13,233 |
|
|
10 |
|
Higher education |
|
|
799 |
|
|
|
1,071 |
|
|
(25 |
) |
|
|
1,702 |
|
|
|
2,173 |
|
|
(22 |
) |
Supplemental education |
|
|
857 |
|
|
|
1,461 |
|
|
(41 |
) |
|
|
1,876 |
|
|
|
2,970 |
|
|
(37 |
) |
Kaplan corporate and other |
|
|
22 |
|
|
|
25 |
|
|
(12 |
) |
|
|
49 |
|
|
|
52 |
|
|
(6 |
) |
|
|
$ |
8,855 |
|
|
$ |
9,460 |
|
|
(6 |
) |
|
$ |
18,160 |
|
|
$ |
18,428 |
|
|
(1 |
) |
Pension Expense |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Kaplan international |
|
$ |
166 |
|
|
$ |
81 |
|
|
— |
|
|
$ |
329 |
|
|
$ |
161 |
|
|
— |
|
Higher education |
|
|
2,045 |
|
|
|
923 |
|
|
— |
|
|
|
3,826 |
|
|
|
1,845 |
|
|
— |
|
Supplemental education |
|
|
2,094 |
|
|
|
1,023 |
|
|
— |
|
|
|
3,912 |
|
|
|
2,047 |
|
|
91 |
|
Kaplan corporate and other |
|
|
407 |
|
|
|
229 |
|
|
78 |
|
|
|
755 |
|
|
|
401 |
|
|
88 |
|
|
|
$ |
4,712 |
|
|
$ |
2,256 |
|
|
— |
|
|
$ |
8,822 |
|
|
$ |
4,454 |
|
|
98 |
|
Adjusted Operating Cash Flow (non-GAAP)(1) |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Kaplan international |
|
$ |
33,167 |
|
|
$ |
27,735 |
|
|
20 |
|
|
$ |
71,998 |
|
|
$ |
55,446 |
|
|
30 |
|
Higher education |
|
|
17,198 |
|
|
|
19,789 |
|
|
(13 |
) |
|
|
25,401 |
|
|
|
28,896 |
|
|
(12 |
) |
Supplemental education |
|
|
8,623 |
|
|
|
5,996 |
|
|
44 |
|
|
|
16,040 |
|
|
|
12,280 |
|
|
31 |
|
Kaplan corporate and other |
|
|
(7,626 |
) |
|
|
(7,570 |
) |
|
(1 |
) |
|
|
(14,836 |
) |
|
|
(12,209 |
) |
|
(22 |
) |
Intersegment elimination |
|
|
354 |
|
|
|
(134 |
) |
|
— |
|
|
|
89 |
|
|
|
25 |
|
|
— |
|
|
|
$ |
51,716 |
|
|
$ |
45,816 |
|
|
13 |
|
|
$ |
98,692 |
|
|
$ |
84,438 |
|
|
17 |
|
____________
(1) |
Adjusted Operating Cash Flow (non-GAAP) is calculated as Operating Income (Loss) before Amortization of Intangible Assets and Impairment of Long-Lived Assets plus Depreciation Expense and Pension Expense. |
NON-GAAP FINANCIAL INFORMATION
(Unaudited)
In addition to the results reported in accordance with accounting principles generally accepted in
- the ability to make meaningful period-to-period comparisons of the Company’s ongoing results;
- the ability to identify trends in the Company’s underlying business; and
- a better understanding of how management plans and measures the Company’s underlying business.
Adjusted Operating Cash Flow and Net income, excluding certain items, should not be considered substitutes or alternatives to computations calculated in accordance with and required by GAAP. These non-GAAP financial measures should be read only in conjunction with financial information presented on a GAAP basis.
The gains and losses on marketable equity securities relate to the change in the fair value (quoted prices) of its portfolio of equity securities. The mandatorily redeemable noncontrolling interest represents the ownership portion of a group of minority shareholders at a subsidiary of the
The following tables reconcile the non-GAAP financial measures for Net income, excluding certain items, to the most directly comparable GAAP measures:
|
Three Months Ended |
||||||||||||||||||||||
|
2024 |
|
2023 |
||||||||||||||||||||
(in thousands, except per share amounts) |
(Loss) Income before income taxes |
|
Income Taxes |
|
Net (Loss) Income |
|
Income before income taxes |
|
Income Taxes |
|
Net Income |
||||||||||||
Amounts attributable to Graham Holdings Company Common Stockholders |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
As reported |
$ |
(14,727 |
) |
|
$ |
4,100 |
|
|
$ |
(18,827 |
) |
|
$ |
165,971 |
|
|
$ |
41,800 |
|
|
$ |
124,171 |
|
Attributable to noncontrolling interests |
|
|
|
|
|
(2,213 |
) |
|
|
|
|
|
|
(1,383 |
) |
||||||||
Attributable to Graham Holdings Company Stockholders |
|
|
|
|
|
(21,040 |
) |
|
|
|
|
|
|
122,788 |
|
||||||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net credit related to fair value changes in contingent consideration from prior acquisitions |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,797 |
) |
|
|
(144 |
) |
|
|
(4,653 |
) |
|
|
26,287 |
|
|
|
5,693 |
|
|
|
20,594 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Charges related to non-operating Voluntary Retirement Incentive Program and Separation Incentive Programs |
|
16,410 |
|
|
|
4,201 |
|
|
|
12,209 |
|
|
|
5,517 |
|
|
|
1,419 |
|
|
|
4,098 |
|
Interest expense (credit) related to the fair value adjustment of the mandatorily redeemable noncontrolling interest |
|
73,539 |
|
|
|
12,145 |
|
|
|
61,394 |
|
|
|
(1,179 |
) |
|
|
(27 |
) |
|
|
(1,152 |
) |
Net gains on marketable equity securities |
|
(19,628 |
) |
|
|
(5,026 |
) |
|
|
(14,602 |
) |
|
|
(78,648 |
) |
|
|
(20,704 |
) |
|
|
(57,944 |
) |
Net losses of affiliates whose operations are not managed by the Company |
|
1,128 |
|
|
|
289 |
|
|
|
839 |
|
|
|
8,633 |
|
|
|
2,273 |
|
|
|
6,360 |
|
Gain on sale of certain WGB websites |
|
(3,483 |
) |
|
|
(760 |
) |
|
|
(2,723 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Gain on sale of Pinna |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(10,033 |
) |
|
|
(2,641 |
) |
|
|
(7,392 |
) |
Non-operating loss (gain) from impairment, write-up and sale of cost method investments |
|
337 |
|
|
|
86 |
|
|
|
251 |
|
|
|
(1,320 |
) |
|
|
(347 |
) |
|
|
(973 |
) |
Net Income, adjusted (non-GAAP) |
|
|
|
|
$ |
56,922 |
|
|
|
|
|
|
$ |
61,132 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Per share information attributable to Graham Holdings Company Common Stockholders |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Diluted (loss) income per common share, as reported |
|
|
|
|
$ |
(4.79 |
) |
|
|
|
|
|
$ |
25.89 |
|
||||||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net credit related to fair value changes in contingent consideration from prior acquisitions |
|
|
|
|
|
— |
|
|
|
|
|
|
|
(0.98 |
) |
||||||||
|
|
|
|
|
|
4.62 |
|
|
|
|
|
|
|
— |
|
||||||||
Charges related to non-operating Voluntary Retirement Incentive Program and Separation Incentive Programs |
|
|
|
|
|
2.74 |
|
|
|
|
|
|
|
0.86 |
|
||||||||
Interest expense (credit) related to the fair value adjustment of the mandatorily redeemable noncontrolling interest |
|
|
|
|
|
13.77 |
|
|
|
|
|
|
|
(0.24 |
) |
||||||||
Net gains on marketable equity securities |
|
|
|
|
|
(3.28 |
) |
|
|
|
|
|
|
(12.22 |
) |
||||||||
Net losses of affiliates whose operations are not managed by the Company |
|
|
|
|
|
0.19 |
|
|
|
|
|
|
|
1.34 |
|
||||||||
Gain on sale of certain WGB websites |
|
|
|
|
|
(0.61 |
) |
|
|
|
|
|
|
— |
|
||||||||
Gain on sale of Pinna |
|
|
|
|
|
— |
|
|
|
|
|
|
|
(1.56 |
) |
||||||||
Non-operating loss (gain) from impairment, write-up and sale of cost method investments |
|
|
|
|
|
0.06 |
|
|
|
|
|
|
|
(0.21 |
) |
||||||||
Diluted income per common share, adjusted (non-GAAP) |
|
|
|
|
$ |
12.70 |
|
|
|
|
|
|
$ |
12.88 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
The adjusted diluted per share amounts may not compute due to rounding. |
|
Six Months Ended |
||||||||||||||||||||||
|
2024 |
|
2023 |
||||||||||||||||||||
(in thousands, except per share amounts) |
Income before income taxes |
|
Income Taxes |
|
Net Income |
|
Income before income taxes |
|
Income Taxes |
|
Net Income |
||||||||||||
Amounts attributable to Graham Holdings Company Common Stockholders |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
As reported |
$ |
154,112 |
|
|
$ |
47,600 |
|
|
$ |
106,512 |
|
|
$ |
238,148 |
|
|
$ |
61,000 |
|
|
$ |
177,148 |
|
Attributable to noncontrolling interests |
|
|
|
|
|
(3,172 |
) |
|
|
|
|
|
|
(2,088 |
) |
||||||||
Attributable to Graham Holdings Company Stockholders |
|
|
|
|
$ |
103,340 |
|
|
|
|
|
|
$ |
175,060 |
|
||||||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net credit related to fair value changes in contingent consideration from prior acquisitions |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,688 |
) |
|
|
(143 |
) |
|
|
(4,545 |
) |
|
|
26,287 |
|
|
|
5,693 |
|
|
|
20,594 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Charges related to non-operating Voluntary Retirement Incentive Program and Separation Incentive Programs |
|
16,828 |
|
|
|
4,308 |
|
|
|
12,520 |
|
|
|
9,646 |
|
|
|
2,481 |
|
|
|
7,165 |
|
Interest expense related to the fair value adjustment of the mandatorily redeemable noncontrolling interest |
|
75,415 |
|
|
|
12,241 |
|
|
|
63,174 |
|
|
|
289 |
|
|
|
47 |
|
|
|
242 |
|
Net gains on marketable equity securities |
|
(123,780 |
) |
|
|
(31,693 |
) |
|
|
(92,087 |
) |
|
|
(96,670 |
) |
|
|
(25,448 |
) |
|
|
(71,222 |
) |
Net losses of affiliates whose operations are not managed by the Company |
|
2,615 |
|
|
|
670 |
|
|
|
1,945 |
|
|
|
6,820 |
|
|
|
1,795 |
|
|
|
5,025 |
|
Gain on sale of certain WGB websites |
|
(3,483 |
) |
|
|
(760 |
) |
|
|
(2,723 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Gain on sale of Pinna |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(10,033 |
) |
|
|
(2,641 |
) |
|
|
(7,392 |
) |
Non-operating loss (gain) from impairment, write-up and sales of cost method investments |
|
744 |
|
|
|
191 |
|
|
|
553 |
|
|
|
(3,935 |
) |
|
|
(1,008 |
) |
|
|
(2,927 |
) |
Net Income, adjusted (non-GAAP) |
|
|
|
|
$ |
107,316 |
|
|
|
|
|
|
$ |
101,406 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Per share information attributable to Graham Holdings Company Common Stockholders |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Diluted income per common share, as reported |
|
|
|
|
$ |
23.11 |
|
|
|
|
|
|
$ |
36.67 |
|
||||||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net credit related to fair value changes in contingent consideration from prior acquisitions |
|
|
|
|
|
— |
|
|
|
|
|
|
|
(0.95 |
) |
||||||||
|
|
|
|
|
|
4.60 |
|
|
|
|
|
|
|
— |
|
||||||||
Charges related to non-operating Voluntary Retirement Incentive Program and Separation Incentive Programs |
|
|
|
|
|
2.80 |
|
|
|
|
|
|
|
1.50 |
|
||||||||
Interest expense related to the fair value adjustment of the mandatorily redeemable noncontrolling interest |
|
|
|
|
|
14.13 |
|
|
|
|
|
|
|
0.05 |
|
||||||||
Net gains on marketable equity securities |
|
|
|
|
|
(20.59 |
) |
|
|
|
|
|
|
(14.92 |
) |
||||||||
Net losses of affiliates whose operations are not managed by the Company |
|
|
|
|
|
0.43 |
|
|
|
|
|
|
|
1.05 |
|
||||||||
Gain on sale of certain WGB websites |
|
|
|
|
|
(0.61 |
) |
|
|
|
|
|
|
— |
|
||||||||
Gain on sale of Pinna |
|
|
|
|
|
— |
|
|
|
|
|
|
|
(1.55 |
) |
||||||||
Non-operating loss (gain) from impairment, write-up and sales of cost method investments |
|
|
|
|
|
0.12 |
|
|
|
|
|
|
|
(0.61 |
) |
||||||||
Diluted income per common share, adjusted (non-GAAP) |
|
|
|
|
$ |
23.99 |
|
|
|
|
|
|
$ |
21.24 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
The adjusted diluted per share amounts may not compute due to rounding. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240730170504/en/
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