Graham Holdings Company Reports Third Quarter Earnings

ARLINGTON, Va.--(BUSINESS WIRE)--Graham Holdings Company (NYSE: GHC) today reported its financial results for the third quarter and first nine months of 2024. The Company also filed its Form 10-Q today for the quarter ended September 30, 2024 with the Securities and Exchange Commission.

Division Operating Results

Revenue for the third quarter of 2024 was $1,207.2 million, up 9% from $1,111.5 million in the third quarter of 2023. Revenues increased at education, television broadcasting, healthcare and automotive, partially offset by declines at manufacturing and other businesses. The Company reported operating income of $81.6 million for the third quarter of 2024, compared to an operating loss of $57.1 million for the third quarter of 2023. The improvement in operating results is due to goodwill and other long-lived asset impairment charges at World of Good Brands (WGB) and Dekko in the third quarter of 2023 and increases at education, television broadcasting, healthcare and automotive, partially offset by declines at manufacturing and other businesses, excluding the impairments. The Company reported adjusted operating cash flow (non-GAAP) of $126.1 million for the third quarter of 2024, compared to $83.7 million for the third quarter of 2023. Adjusted operating cash flow improved at education, television broadcasting, healthcare and automotive, partially offset by declines at manufacturing and other businesses. Capital expenditures totaled $23.8 million and $26.7 million for the third quarter of 2024 and 2023, respectively.

Revenue for the first nine months of 2024 was $3,545.1 million, up 9% from $3,248.1 million in the first nine months of 2023. Revenues increased at education, television broadcasting, healthcare and automotive, partially offset by declines at manufacturing and other businesses. The Company recorded operated income of $143.0 million for the first nine months of 2024, compared to $28.6 million for the first nine months of 2023. Excluding goodwill and other long-lived asset impairment charges, the improvement in operating results is due to increases at education, television broadcasting, healthcare and automotive, partially offset by declines at manufacturing and other businesses. The Company reported adjusted operating cash flow (non-GAAP) of $307.4 million for the first nine months of 2024, compared to $255.3 million for the first nine months of 2023. Adjusted operating cash flow improved at education, television broadcasting, healthcare, automotive and other businesses, partially offset by declines at manufacturing. Capital expenditures totaled $66.0 million and $71.6 million for the first nine months of 2024 and 2023, respectively.

Acquisitions and Dispositions of Businesses

There were no significant business acquisitions or dispositions during the first nine months of 2024.

Debt, Cash and Marketable Equity Securities

At September 30, 2024, the Company had $765.2 million in borrowings outstanding at an average interest rate of 6.2%, including $66.9 million outstanding on its $300 million revolving credit facility. Cash, marketable equity securities and other investments totaled $1,114.0 million at September 30, 2024.

Overall, the Company recognized $30.5 million and $154.3 million in net gains on marketable equity securities in the third quarter and first nine months of 2024, respectively, compared to $16.8 million and $113.4 million in net gains on marketable equity securities in the third quarter and first nine months of 2023, respectively.

Common Stock Repurchases

During the third quarter and first nine months of 2024, the Company purchased a total of 64,490 and 133,276 shares, respectively, of its Class B common stock at a cost of $48.7 million and $98.2 million, respectively. At September 30, 2024, there were 4,347,533 shares outstanding. On September 12, 2024, the Board of Directors authorized the Company to acquire up to 500,000 shares of its Class B common stock; the Company has remaining authorization for 486,132 shares as of September 30, 2024.

Overall Company Results

The Company reported net income attributable to common shares of $72.5 million ($16.42 per share) for the third quarter of 2024, compared to a net loss of $23.0 million ($5.02 per share) for the third quarter of 2023. For the first nine months of 2024, the Company recorded net income attributable to common shares of $175.8 million ($39.49 per share), compared to $152.0 million ($32.14 per share) for the first nine months of 2023.

The results for the third quarter and first nine 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 $76.1 million ($17.25 per share) for the third quarter of 2024, compared to $48.9 million ($10.45 per share) for the third quarter of 2023. Excluding these items, net income attributable to common shares was $183.5 million ($41.20 per share) for the first nine months of 2024, compared to $150.8 million ($31.87 per share) for the first nine months of 2023.

Subsequent Event

In October 2024, the Company purchased an irrevocable group annuity contract from an insurance company for $461.3 million to settle $457.9 million of the outstanding defined benefit pension obligation related to certain retirees and beneficiaries. The purchase of the group annuity contract was funded from the assets of the Company's pension plan. As a result of this transaction, the Company was relieved of all responsibility for these pension obligations and the insurance company is now required to pay and administer the retirement benefits owed to approximately 1,850 retirees and beneficiaries, with no change to the amount, timing or form of monthly retirement benefit payments. As a result, the Company estimates that it will record a one-time pre-tax settlement gain of approximately $700 million in the fourth quarter of 2024.

* * * * * * * * * * * *

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.

GRAHAM HOLDINGS COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
	Three Months Ended
	September 30							%
(in thousands, except per share amounts)		2024				2023		Change
Operating revenues	$	1,207,162			$	1,111,519		9
Operating expenses		1,095,797				1,036,344		6
Depreciation of property, plant and equipment		21,332				22,207		(4	)
Amortization of intangible assets		8,385				11,759		(29	)
Impairment of goodwill and other long-lived assets		-				98,321		-
Operating income (loss)		81,648				(57,112	)	-
Equity in losses of affiliates, net		(13,361	)			(791	)	-
Interest income		2,277				1,986		15
Interest expense		(25,896	)			(11,810	)	-
Non-operating pension and postretirement benefit income, net		38,307				35,653		7
Gain on marketable equity securities, net		30,496				16,759		82
Other (expenses) income, net		(465	)			3,581		-
Income (loss) before income taxes		113,006				(11,734	)	-
Provision for income taxes		38,500				9,400		-
Net income (loss)		74,506				(21,134	)	-
Net income attributable to noncontrolling interests		(2,003	)			(1,897	)	6
Net Income (Loss) Attributable to Graham Holdings Company Common Stockholders	$	72,503			$	(23,031	)	-
Per Share Information Attributable to Graham Holdings Company Common Stockholders
Basic net income (loss) per common share	$	16.54			$	(5.02	)	-
Basic average number of common shares outstanding		4,352				4,602
Diluted net income (loss) per common share	$	16.42			$	(5.02	)	-
Diluted average number of common shares outstanding		4,384				4,602

GRAHAM HOLDINGS COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
	Nine Months Ended
	September 30							%
(in thousands, except per share amounts)		2024				2023		Change
Operating revenues	$	3,545,104			$	3,248,064		9
Operating expenses		3,280,590				3,018,057		9
Depreciation of property, plant and equipment		66,032				63,335		4
Amortization of intangible assets		29,194				39,007		(25	)
Impairment of goodwill and other long-lived assets		26,287				99,066		(73	)
Operating income		143,001				28,599		-
Equity in losses of affiliates, net		(8,470	)			(2,245	)	-
Interest income		6,566				4,738		39
Interest expense		(136,607	)			(37,878	)	-
Non-operating pension and postretirement benefit income, net		105,379				97,313		8
Gain on marketable equity securities, net		154,276				113,429		36
Other income, net		2,973				22,458		(87	)
Income before income taxes		267,118				226,414		18
Provision for income taxes		86,100				70,400		22
Net income		181,018				156,014		16
Net income attributable to noncontrolling interests		(5,175	)			(3,985	)	30
Net Income Attributable to Graham Holdings Company Common Stockholders	$	175,843			$	152,029		16
Per Share Information Attributable to Graham Holdings Company Common Stockholders
Basic net income per common share	$	39.74			$	32.23		23
Basic average number of common shares outstanding		4,395				4,686
Diluted net income per common share	$	39.49			$	32.14		23
Diluted average number of common shares outstanding		4,423				4,700

GRAHAM HOLDINGS COMPANY
BUSINESS DIVISION INFORMATION
(Unaudited)
		Three Months Ended											Nine Months Ended
		September 30								%			September 30								%
(in thousands)			2024				2023			Change				2024				2023			Change
Operating Revenues
Education		$	438,090			$	411,837			6			$	1,283,587			$	1,192,105			8
Television broadcasting			145,422				116,112			25				373,958				347,818			8
Manufacturing			95,385				109,216			(13	)			300,914				343,882			(12	)
Healthcare			155,413				116,164			34				431,142				331,505			30
Automotive			289,392				272,018			6				902,046				765,251			18
Other businesses			83,464				86,653			(4	)			253,753				269,110			(6	)
Corporate office			576				365			58				1,727				1,215			42
Intersegment elimination			(580	)			(846	)		-				(2,023	)			(2,822	)		-
		$	1,207,162			$	1,111,519			9			$	3,545,104			$	3,248,064			9
Operating Expenses
Education		$	403,200			$	381,978			6			$	1,182,833			$	1,109,090			7
Television broadcasting			83,508				84,165			(1	)			251,283				254,098			(1	)
Manufacturing			90,890				150,190			(39	)			289,085				365,546			(21	)
Healthcare			141,153				110,193			28				398,054				314,221			27
Automotive			280,328				263,781			6				873,127				736,711			19
Other businesses			112,358				164,206			(32	)			364,563				401,525			(9	)
Corporate office			14,657				14,964			(2	)			45,181				41,096			10
Intersegment elimination			(580	)			(846	)		-				(2,023	)			(2,822	)		-
		$	1,125,514			$	1,168,631			(4	)		$	3,402,103			$	3,219,465			6
Operating Income (Loss)
Education		$	34,890			$	29,859			17			$	100,754			$	83,015			21
Television broadcasting			61,914				31,947			94				122,675				93,720			31
Manufacturing			4,495				(40,974	)		-				11,829				(21,664	)		-
Healthcare			14,260				5,971			-				33,088				17,284			91
Automotive			9,064				8,237			10				28,919				28,540			1
Other businesses			(28,894	)			(77,553	)		63				(110,810	)			(132,415	)		16
Corporate office			(14,081	)			(14,599	)		4				(43,454	)			(39,881	)		(9	)
		$	81,648			$	(57,112	)		-			$	143,001			$	28,599			-
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets
Education		$	2,421			$	3,210			(25	)		$	8,267			$	11,610			(29	)
Television broadcasting			1,360				1,363			0				4,070				4,088			0
Manufacturing			2,619				51,489			(95	)			8,387				60,683			(86	)
Healthcare			159				866			(82	)			1,393				2,702			(48	)
Automotive			5				3			67				10				3			-
Other businesses			1,821				53,149			(97	)			33,354				58,987			(43	)
Corporate office			-				-			-				-				-			-
		$	8,385			$	110,080			(92	)		$	55,481			$	138,073			(60	)
Operating Income (Loss) before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets
Education		$	37,311			$	33,069			13			$	109,021			$	94,625			15
Television broadcasting			63,274				33,310			90				126,745				97,808			30
Manufacturing			7,114				10,515			(32	)			20,216				39,019			(48	)
Healthcare			14,419				6,837			-				34,481				19,986			73
Automotive			9,069				8,240			10				28,929				28,543			1
Other businesses			(27,073	)			(24,404	)		(11	)			(77,456	)			(73,428	)		(5	)
Corporate office			(14,081	)			(14,599	)		4				(43,454	)			(39,881	)		(9	)
		$	90,033			$	52,968			70			$	198,482			$	166,672			19
		Three Months Ended											Nine Months Ended
		September 30								%			September 30								%
(in thousands)			2024				2023			Change				2024				2023			Change
Depreciation
Education		$	8,576			$	10,000			(14	)		$	26,736			$	28,428			(6	)
Television broadcasting			2,756				3,120			(12	)			8,494				9,243			(8	)
Manufacturing			2,818				2,388			18				8,227				6,957			18
Healthcare			1,754				1,411			24				5,031				3,802			32
Automotive			1,774				1,304			36				5,203				3,565			46
Other businesses			3,522				3,832			(8	)			11,909				10,882			9
Corporate office			132				152			(13	)			432				458			(6	)
		$	21,332			$	22,207			(4	)		$	66,032			$	63,335			4
Pension Expense
Education		$	4,445			$	2,226			100			$	13,267			$	6,680			99
Television broadcasting			1,528				833			83				4,583				2,498			83
Manufacturing			978				280			-				1,897				836			-
Healthcare			4,804				3,521			36				14,413				10,563			36
Automotive			29				16			81				86				26			-
Other businesses			1,963				662			-				5,577				1,847			-
Corporate office			1,014				952			7				3,043				2,856			7
		$	14,761			$	8,490			74			$	42,866			$	25,306			69
Adjusted Operating Cash Flow (non-GAAP)(1)
Education		$	50,332			$	45,295			11			$	149,024			$	129,733			15
Television broadcasting			67,558				37,263			81				139,822				109,549			28
Manufacturing			10,910				13,183			(17	)			30,340				46,812			(35	)
Healthcare			20,977				11,769			78				53,925				34,351			57
Automotive			10,872				9,560			14				34,218				32,134			6
Other businesses			(21,588	)			(19,910	)		(8	)			(59,970	)			(60,699	)		1
Corporate office			(12,935	)			(13,495	)		4				(39,979	)			(36,567	)		(9	)
		$	126,126			$	83,665			51			$	307,380			$	255,313			20

____________
(1)		Adjusted Operating Cash Flow (non-GAAP) is calculated as Operating Income (Loss) before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets plus Depreciation Expense and Pension Expense.

GRAHAM HOLDINGS COMPANY
EDUCATION DIVISION INFORMATION
(Unaudited)
		Three Months Ended											Nine Months Ended
		September 30								%			September 30								%
(in thousands)			2024				2023			Change				2024				2023			Change
Operating Revenues
Kaplan international		$	277,009			$	249,976			11			$	813,833			$	714,715			14
Higher education			85,655				81,925			5				246,818				250,557			(1	)
Supplemental education			76,134				78,332			(3	)			221,389				226,535			(2	)
Kaplan corporate and other			158				3,101			(95	)			5,739				8,360			(31	)
Intersegment elimination			(866	)			(1,497	)		-				(4,192	)			(8,062	)		-
		$	438,090			$	411,837			6			$	1,283,587			$	1,192,105			8
Operating Expenses
Kaplan international		$	251,471			$	227,756			10			$	731,159			$	650,443			12
Higher education			74,270				73,460			1				215,560				217,214			(1	)
Supplemental education			64,948				68,603			(5	)			199,951				209,543			(5	)
Kaplan corporate and other			10,875				10,513			3				32,096				28,434			13
Amortization of intangible assets			2,421				3,210			(25	)			8,267				11,133			(26	)
Impairment of long-lived assets			-				-			-				-				477			-
Intersegment elimination			(785	)			(1,564	)		-				(4,200	)			(8,154	)		-
		$	403,200			$	381,978			6			$	1,182,833			$	1,109,090			7
Operating Income (Loss)
Kaplan international		$	25,538			$	22,220			15			$	82,674			$	64,272			29
Higher education			11,385				8,465			34				31,258				33,343			(6	)
Supplemental education			11,186				9,729			15				21,438				16,992			26
Kaplan corporate and other			(10,717	)			(7,412	)		(45	)			(26,357	)			(20,074	)		(31	)
Amortization of intangible assets			(2,421	)			(3,210	)		25				(8,267	)			(11,133	)		26
Impairment of long-lived assets			-				-			-				-				(477	)		-
Intersegment elimination			(81	)			67			-				8				92			-
		$	34,890			$	29,859			17			$	100,754			$	83,015			21
Operating Income (Loss) before Amortization of Intangible Assets and Impairment of Long-Lived Assets
Kaplan international		$	25,538			$	22,220			15			$	82,674			$	64,272			29
Higher education			11,385				8,465			34				31,258				33,343			(6	)
Supplemental education			11,186				9,729			15				21,438				16,992			26
Kaplan corporate and other			(10,717	)			(7,412	)		(45	)			(26,357	)			(20,074	)		(31	)
Intersegment elimination			(81	)			67			-				8				92			-
		$	37,311			$	33,069			13			$	109,021			$	94,625			15
Depreciation
Kaplan international		$	7,202			$	7,599			(5	)		$	21,735			$	20,832			4
Higher education			589				1,258			(53	)			2,291				3,431			(33	)
Supplemental education			777				1,117			(30	)			2,653				4,087			(35	)
Kaplan corporate and other			8				26			(69	)			57				78			(27	)
		$	8,576			$	10,000			(14	)		$	26,736			$	28,428			(6	)
Pension Expense
Kaplan international		$	198			$	83			-			$	527			$	244			-
Higher education			1,903				958			99				5,729				2,803			-
Supplemental education			1,962				1,063			85				5,874				3,110			89
Kaplan corporate and other			382				122			-				1,137				523			-
		$	4,445			$	2,226			100			$	13,267			$	6,680			99
Adjusted Operating Cash Flow (non-GAAP)(1)
Kaplan international		$	32,938			$	29,902			10			$	104,936			$	85,348			23
Higher education			13,877				10,681			30				39,278				39,577			(1	)
Supplemental education			13,925				11,909			17				29,965				24,189			24
Kaplan corporate and other			(10,327	)			(7,264	)		(42	)			(25,163	)			(19,473	)		(29	)
Intersegment elimination			(81	)			67			-				8				92			-
		$	50,332			$	45,295			11			$	149,024			$	129,733			15

____________
(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
GRAHAM HOLDINGS COMPANY
(Unaudited)

In addition to the results reported in accordance with accounting principles generally accepted in the United States (GAAP) included in this press release, the Company has provided information regarding Adjusted Operating Cash Flow and Net income excluding certain items described below, reconciled to the most directly comparable GAAP measures. Management believes that these non-GAAP measures, when read in conjunction with the Company's GAAP financials, provide useful information to investors by offering:

• 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 Company's Healthcare business. The Company measures the redemption value of this minority ownership on a quarterly basis with changes in the fair value recorded as interest expense or income, which is included in net income for the period. The effect of gains and losses on marketable equity securities and net interest expense related to fair value adjustments of the mandatorily redeemable noncontrolling interest are not directly related to the core performance of the Company's business operations since these items do not directly relate to the sale of the Company's services or products. The accounting principles generally accepted in the United States ("GAAP") require that the Company include the gains and losses on marketable equity securities and net interest expense related to fair value adjustments of the mandatorily redeemable noncontrolling interest in net income on the Condensed Consolidated Statements of Operations. The Company excludes the gains and losses on marketable equity securities and net interest expense related to fair value adjustments of the mandatorily redeemable noncontrolling interest from the non-GAAP adjusted net income because these items are independent of the Company's core operations and not indicative of the performance of the Company's business operations.

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 September 30
	2024												2023
(in thousands, except per share amounts)	Income before income taxes				Income Taxes				Net (Loss) Income				(Loss) Income before income taxes				Income Taxes				Net Income
Amounts attributable to Graham Holdings Company Common Stockholders
As reported	$	113,006			$	38,500			$	74,506			$	(11,734	)		$	9,400			$	(21,134	)
Attributable to noncontrolling interests										(2,003	)											(1,897	)
Attributable to Graham Holdings Company Stockholders										72,503												(23,031	)
Adjustments:
Goodwill and other long-lived asset impairment charges		-				(626	)			626				98,321				13,876				84,445
Charges related to non-operating Separation Incentive Programs		3,665				938				2,727				-				-				-
Interest expense related to the fair value adjustment of the mandatorily redeemable noncontrolling interest		9,730				(3,501	)			13,231				1,132				105				1,027
Net gains on marketable equity securities		(30,496	)			(7,808	)			(22,688	)			(16,758	)			(4,411	)			(12,347	)
Net losses of affiliates whose operations are not managed by the Company		2,307				590				1,717				2,836				746				2,090
Gain on sale of certain businesses and websites		(3,763	)			(1,197	)			(2,566	)			-				-				-
Credit to interest expense resulting from gains realized related to the termination of interest rate swaps		-				-				-				(4,581	)			(1,252	)			(3,329	)
Net non-operating loss from impairment and write-up equity and cost method investments		14,236				3,642				10,594				-				-				-
Net Income, adjusted (non-GAAP)									$	76,144											$	48,855
Per share information attributable to Graham Holdings Company Common Stockholders
Diluted (loss) income per common share, as reported									$	16.42											$	(5.02	)
Adjustments:
Goodwill and other long-lived asset impairment charges										0.14												18.18
Charges related to non-operating Separation Incentive Programs										0.62												-
Interest expense related to the fair value adjustment of the mandatorily redeemable noncontrolling interest										3.00												0.22
Net gains on marketable equity securities										(5.14	)											(2.66	)
Net losses of affiliates whose operations are not managed by the Company										0.39												0.45
Gain on sale of certain businesses and websites										(0.58	)											-
Credit to interest expense resulting from gains realized related to the termination of interest rate swaps										-												(0.72	)
Net non-operating loss from impairment and write-up equity and cost method investments										2.40												-
Diluted income per common share, adjusted (non-GAAP)									$	17.25											$	10.45
The adjusted diluted per share amounts may not compute due to rounding.

	Nine Months Ended September 30
	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	$	267,118			$	86,100			$	181,018			$	226,414			$	70,400			$	156,014
Attributable to noncontrolling interests										(5,175	)											(3,985	)
Attributable to Graham Holdings Company Stockholders									$	175,843											$	152,029
Adjustments:
Net credit related to fair value changes in contingent consideration from prior acquisitions		-				-				-				(4,688	)			(143	)			(4,545	)
Goodwill and other long-lived asset impairment charges		26,287				5,067				21,220				99,066				14,078				84,988
Charges related to non-operating Voluntary Retirement Incentive Program and Separation Incentive Programs		20,493				5,246				15,247				9,646				2,481				7,165
Interest expense related to the fair value adjustment of the mandatorily redeemable noncontrolling interest		85,145				8,740				76,405				1,421				152				1,269
Net gains on marketable equity securities		(154,276	)			(39,502	)			(114,774	)			(113,429	)			(29,861	)			(83,568	)
Net losses of affiliates whose operations are not managed by the Company		4,922				1,260				3,662				9,657				2,542				7,115
Gain on sale of certain businesses and websites		(7,246	)			(1,956	)			(5,290	)			-				-				-
Gain on sale of Pinna		-				-				-				(10,033	)			(2,641	)			(7,392	)
Non-operating loss (gain) from impairment, write-up and sales of equity and cost method investments		14,980				3,833				11,147				(3,935	)			(1,008	)			(2,927	)
Credit to interest expense resulting from gains realized related to the termination of interest rate swaps		-				-				-				(4,581	)			(1,252	)			(3,329	)
Net Income, adjusted (non-GAAP)									$	183,460											$	150,805
Per share information attributable to Graham Holdings Company Common Stockholders
Diluted income per common share, as reported									$	39.49											$	32.14
Adjustments:
Net credit related to fair value changes in contingent consideration from prior acquisitions										-												(0.98	)
Goodwill and other long-lived asset impairment charges										4.77												18.30
Charges related to non-operating Voluntary Retirement Incentive Program and Separation Incentive Programs										3.42												1.54
Interest expense related to the fair value adjustment of the mandatorily redeemable noncontrolling interest										17.16												0.27
Net gains on marketable equity securities										(25.77	)											(17.99	)
Net losses of affiliates whose operations are not managed by the Company										0.82												1.53
Gain on sale of certain businesses and websites										(1.19	)											-
Gain on sale of Pinna										-												(1.59	)
Non-operating loss (gain) from impairment, write-up and sales of equity and cost method investments										2.50												(0.63	)
Credit to interest expense resulting from gains realized related to the termination of interest rate swaps										-												(0.72	)
Diluted income per common share, adjusted (non-GAAP)									$	41.20											$	31.87
The adjusted diluted per share amounts may not compute due to rounding.

Contacts

Wallace R. Cooney
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