Graham Holdings Company Reports 2024 and Fourth Quarter Earnings
Division Operating Results
Revenue for 2024 was
For the fourth quarter of 2024, revenue was
Acquisitions and Dispositions of Businesses
There were no significant business acquisitions or dispositions during the fourth quarter of 2024.
Debt, Cash and Marketable Equity Securities
At December 31, 2024, the Company had
At December 31, 2023, the Company had
The Company recognized
Common Stock Repurchases
During the fourth quarter of 2024, the Company purchased a total of 19,672 shares of its Class B common stock at a cost of
Pension Plan
At December 31, 2024, the Company had a pension surplus of
In the fourth quarter of 2024, the Company purchased an irrevocable group annuity contract from an insurance company for
Mandatorily Redeemable Noncontrolling Interest and Subsequent Event
The Company recorded interest expense of
On February 25, 2025, the Company and a group of minority shareholders entered into an agreement to settle a significant portion of the mandatorily redeemable noncontrolling interest for a total of
Overall Company Results
The Company reported net income attributable to common shares of
The results for 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
* * * * * * * * * * * *
Additional Commentary on Fourth Quarter 2024 Results
Division Results
Education
For the fourth quarter of 2024, education division revenue totaled
Kaplan International revenue increased
Higher Education revenue in the fourth quarter of 2024 increased
Supplemental Education revenue increased
Kaplan corporate and other expenses decreased in the fourth quarter of 2024 due to lower incentive compensation expense compared to the fourth quarter of 2023.
In the fourth quarter of 2024, Kaplan recorded an intangible asset impairment charge of
Television Broadcasting
For the fourth quarter of 2024, revenue increased
Manufacturing
Manufacturing revenues decreased
Healthcare
Healthcare revenues increased
The increase in GHG operating results in the fourth quarter of 2024 is due to substantially higher operating results at CSI from significant revenue growth, along with improved results at home health and Surpass Behavioral Health, partially offset by increased pension expense. Adjusted operating cash flow (non-GAAP) at GHG increased to
GHG recorded equity in earnings of
Automotive
Revenues for the fourth quarter of 2024 decreased
Other Businesses
A summary of revenue by category for other businesses:
|
|
Three Months Ended |
|
|
|||||
|
|
December 31 |
|
% |
|||||
(in thousands) |
2024 |
|
2023 |
|
Change |
||||
Operating Revenues |
|
|
|
|
|
|
|||
Retail (1) |
|
$ |
32,998 |
|
$ |
34,108 |
|
(3 |
) |
Media (2) |
|
|
22,916 |
|
|
28,131 |
|
(19 |
) |
Specialty (3) |
|
|
46,853 |
|
|
38,304 |
|
22 |
|
|
|
$ |
102,767 |
|
$ |
100,543 |
|
2 |
|
____________ |
||
(1) |
Includes Society6 and Saatchi Art (formerly Leaf Marketplace) and Framebridge |
|
(2) |
Includes World of Good Brands (WGB) (formerly Leaf Media), Code3, Slate, Foreign Policy and City Cast |
|
(3) |
Includes Clyde’s Restaurant Group, Decile and Supporting Cast |
|
Overall, revenue from other businesses increased
Operating results improved in the fourth quarter of 2024 due to a reduction in losses at WGB and Saatchi Art and improved results at CRG and Slate, partially offset by increased losses at Society6 and City Cast, and a decline in results at Code3 and Foreign Policy. Adjusted operating cash flow losses (non-GAAP) at other businesses improved to
In the fourth quarter of 2024, the Company offered Separation Incentive Programs (SIPs) to certain employees at WGB and Decile to reduce the number of employees;
Equity in Losses of Affiliates
Overall, the Company recorded equity in earnings of affiliates of
Net Interest Expense
The Company incurred net interest expense of
Non-Operating Pension and Postretirement Benefit Income, Net
The Company recorded net non-operating pension and postretirement benefit income of
In the fourth quarter of 2024, the Company recorded a pre-tax, noncash settlement gain of
In the fourth quarter of 2024, the Company recorded
Other Non-Operating Income (Expense)
For the fourth quarter of 2024, the Company recorded other non-operating income, net, of
Earnings Per Share
The calculation of diluted earnings per share for the fourth quarter of 2024 was based on 4,341,412 weighted average shares outstanding compared to 4,515,022 for the fourth quarter of 2023.
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 2024 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. Any forward-looking statements made in this press release speaks only as of the date on which it is made. 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 |
|
|||||||
|
December 31 |
% |
|||||||
(in thousands, except per share amounts) |
2024 |
|
2023 |
Change |
|||||
Operating revenues |
$ |
1,245,800 |
|
|
$ |
1,166,813 |
|
7 |
|
Operating expenses |
|
1,120,823 |
|
|
|
1,092,258 |
|
3 |
|
Depreciation of property, plant and equipment |
|
21,014 |
|
|
|
22,729 |
|
(8 |
) |
Amortization of intangible assets |
|
7,925 |
|
|
|
11,032 |
|
(28 |
) |
Impairment of long-lived assets |
|
23,535 |
|
|
|
— |
|
— |
|
Operating income |
|
72,503 |
|
|
|
40,794 |
|
78 |
|
Equity in earnings (losses) of affiliates, net |
|
5,167 |
|
|
|
(2,938 |
) |
— |
|
Interest income |
|
3,302 |
|
|
|
2,384 |
|
39 |
|
Interest expense |
|
(49,542 |
) |
|
|
(25,423 |
) |
95 |
|
Non-operating pension and postretirement benefit income, net |
|
689,570 |
|
|
|
36,499 |
|
— |
|
Gain on marketable equity securities, net |
|
27,019 |
|
|
|
24,638 |
|
10 |
|
Other income (expense), net |
|
9,573 |
|
|
|
(3,364 |
) |
— |
|
Income before income taxes |
|
757,592 |
|
|
|
72,590 |
|
— |
|
Provision for income taxes |
|
206,000 |
|
|
|
16,900 |
|
— |
|
Net income |
|
551,592 |
|
|
|
55,690 |
|
— |
|
Net income attributable to noncontrolling interests |
|
(2,801 |
) |
|
|
(2,431 |
) |
15 |
|
Net Income Attributable to Graham Holdings Company Common Stockholders |
$ |
548,791 |
|
|
$ |
53,259 |
|
— |
|
Per Share Information Attributable to Graham Holdings Company Common Stockholders |
|
|
|
|
|||||
Basic net income per common share |
$ |
126.63 |
|
|
$ |
11.76 |
|
— |
|
Basic average number of common shares outstanding |
|
4,305 |
|
|
|
4,498 |
|
|
|
Diluted net income per common share |
$ |
125.55 |
|
|
$ |
11.72 |
|
— |
|
Diluted average number of common shares outstanding |
|
4,341 |
|
|
|
4,515 |
|
|
|
|
|||||||||
GRAHAM HOLDINGS COMPANY |
|||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||
(Unaudited) |
|||||||||
|
|
|
|||||||
|
Twelve Months Ended |
|
|||||||
|
December 31 |
% |
|||||||
(in thousands, except per share amounts) |
2024 |
|
2023 |
Change |
|||||
Operating revenues |
$ |
4,790,904 |
|
|
$ |
4,414,877 |
|
9 |
|
Operating expenses |
|
4,401,413 |
|
|
|
4,110,315 |
|
7 |
|
Depreciation of property, plant and equipment |
|
87,046 |
|
|
|
86,064 |
|
1 |
|
Amortization of intangible assets |
|
37,119 |
|
|
|
50,039 |
|
(26 |
) |
Impairment of goodwill and other long-lived assets |
|
49,822 |
|
|
|
99,066 |
|
(50 |
) |
Operating income |
|
215,504 |
|
|
|
69,393 |
|
— |
|
Equity in losses of affiliates, net |
|
(3,303 |
) |
|
|
(5,183 |
) |
(36 |
) |
Interest income |
|
9,868 |
|
|
|
7,122 |
|
39 |
|
Interest expense |
|
(186,149 |
) |
|
|
(63,301 |
) |
— |
|
Non-operating pension and postretirement benefit income, net |
|
794,949 |
|
|
|
133,812 |
|
— |
|
Gain on marketable equity securities, net |
|
181,295 |
|
|
|
138,067 |
|
31 |
|
Other income, net |
|
12,546 |
|
|
|
19,094 |
|
(34 |
) |
Income before income taxes |
|
1,024,710 |
|
|
|
299,004 |
|
— |
|
Provision for income taxes |
|
292,100 |
|
|
|
87,300 |
|
— |
|
Net income |
|
732,610 |
|
|
|
211,704 |
|
— |
|
Net income attributable to noncontrolling interests |
|
(7,976 |
) |
|
|
(6,416 |
) |
24 |
|
Net Income Attributable to Graham Holdings Company Common Stockholders |
$ |
724,634 |
|
|
$ |
205,288 |
|
— |
|
Per Share Information Attributable to Graham Holdings Company Common Stockholders |
|
|
|
|
|||||
Basic net income per common share |
$ |
164.62 |
|
|
$ |
43.96 |
|
— |
|
Basic average number of common shares outstanding |
|
4,372 |
|
|
|
4,639 |
|
|
|
Diluted net income per common share |
$ |
163.40 |
|
|
$ |
43.82 |
|
— |
|
Diluted average number of common shares outstanding |
|
4,405 |
|
|
|
4,654 |
|
|
|
GRAHAM HOLDINGS COMPANY |
||||||||||||||||||||||
BUSINESS DIVISION INFORMATION |
||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended |
|
|
|
Twelve Months Ended |
|
|
||||||||||||||
|
|
December 31 |
|
% |
|
December 31 |
|
% |
||||||||||||||
(in thousands) |
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
|||||||||||
Operating Revenues |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Education |
|
$ |
408,191 |
|
|
$ |
395,476 |
|
|
3 |
|
|
$ |
1,691,778 |
|
|
$ |
1,587,581 |
|
|
7 |
|
Television broadcasting |
|
|
161,720 |
|
|
|
124,618 |
|
|
30 |
|
|
|
535,678 |
|
|
|
472,436 |
|
|
13 |
|
Manufacturing |
|
|
94,728 |
|
|
|
104,028 |
|
|
(9 |
) |
|
|
395,642 |
|
|
|
447,910 |
|
|
(12 |
) |
Healthcare |
|
|
179,967 |
|
|
|
127,976 |
|
|
41 |
|
|
|
611,109 |
|
|
|
459,481 |
|
|
33 |
|
Automotive |
|
|
298,431 |
|
|
|
314,642 |
|
|
(5 |
) |
|
|
1,200,477 |
|
|
|
1,079,893 |
|
|
11 |
|
Other businesses |
|
|
102,767 |
|
|
|
100,543 |
|
|
2 |
|
|
|
356,520 |
|
|
|
369,653 |
|
|
(4 |
) |
Corporate office |
|
|
575 |
|
|
|
365 |
|
|
58 |
|
|
|
2,302 |
|
|
|
1,580 |
|
|
46 |
|
Intersegment elimination |
|
|
(579 |
) |
|
|
(835 |
) |
|
— |
|
|
|
(2,602 |
) |
|
|
(3,657 |
) |
|
— |
|
|
|
$ |
1,245,800 |
|
|
$ |
1,166,813 |
|
|
7 |
|
|
$ |
4,790,904 |
|
|
$ |
4,414,877 |
|
|
9 |
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Education |
|
$ |
408,116 |
|
|
$ |
374,020 |
|
|
9 |
|
|
$ |
1,590,949 |
|
|
$ |
1,483,110 |
|
|
7 |
|
Television broadcasting |
|
|
83,230 |
|
|
|
84,400 |
|
|
(1 |
) |
|
|
334,513 |
|
|
|
338,498 |
|
|
(1 |
) |
Manufacturing |
|
|
88,187 |
|
|
|
99,157 |
|
|
(11 |
) |
|
|
377,272 |
|
|
|
464,703 |
|
|
(19 |
) |
Healthcare |
|
|
162,170 |
|
|
|
121,415 |
|
|
34 |
|
|
|
560,224 |
|
|
|
435,636 |
|
|
29 |
|
Automotive |
|
|
289,335 |
|
|
|
303,924 |
|
|
(5 |
) |
|
|
1,162,462 |
|
|
|
1,040,635 |
|
|
12 |
|
Other businesses |
|
|
126,809 |
|
|
|
127,854 |
|
|
(1 |
) |
|
|
491,372 |
|
|
|
529,379 |
|
|
(7 |
) |
Corporate office |
|
|
16,029 |
|
|
|
16,084 |
|
|
0 |
|
|
|
61,210 |
|
|
|
57,180 |
|
|
7 |
|
Intersegment elimination |
|
|
(579 |
) |
|
|
(835 |
) |
|
— |
|
|
|
(2,602 |
) |
|
|
(3,657 |
) |
|
— |
|
|
|
$ |
1,173,297 |
|
|
$ |
1,126,019 |
|
|
4 |
|
|
$ |
4,575,400 |
|
|
$ |
4,345,484 |
|
|
5 |
|
Operating Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Education |
|
$ |
75 |
|
|
$ |
21,456 |
|
|
— |
|
|
$ |
100,829 |
|
|
$ |
104,471 |
|
|
(3 |
) |
Television broadcasting |
|
|
78,490 |
|
|
|
40,218 |
|
|
95 |
|
|
|
201,165 |
|
|
|
133,938 |
|
|
50 |
|
Manufacturing |
|
|
6,541 |
|
|
|
4,871 |
|
|
34 |
|
|
|
18,370 |
|
|
|
(16,793 |
) |
|
— |
|
Healthcare |
|
|
17,797 |
|
|
|
6,561 |
|
|
— |
|
|
|
50,885 |
|
|
|
23,845 |
|
|
— |
|
Automotive |
|
|
9,096 |
|
|
|
10,718 |
|
|
(15 |
) |
|
|
38,015 |
|
|
|
39,258 |
|
|
(3 |
) |
Other businesses |
|
|
(24,042 |
) |
|
|
(27,311 |
) |
|
12 |
|
|
|
(134,852 |
) |
|
|
(159,726 |
) |
|
16 |
|
Corporate office |
|
|
(15,454 |
) |
|
|
(15,719 |
) |
|
2 |
|
|
|
(58,908 |
) |
|
|
(55,600 |
) |
|
(6 |
) |
|
|
$ |
72,503 |
|
|
$ |
40,794 |
|
|
78 |
|
|
$ |
215,504 |
|
|
$ |
69,393 |
|
|
— |
|
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Education |
|
$ |
25,150 |
|
|
$ |
2,943 |
|
|
— |
|
|
$ |
33,417 |
|
|
$ |
14,553 |
|
|
— |
|
Television broadcasting |
|
|
1,360 |
|
|
|
1,362 |
|
|
0 |
|
|
|
5,430 |
|
|
|
5,450 |
|
|
0 |
|
Manufacturing |
|
|
2,431 |
|
|
|
3,120 |
|
|
(22 |
) |
|
|
10,818 |
|
|
|
63,803 |
|
|
(83 |
) |
Healthcare |
|
|
118 |
|
|
|
973 |
|
|
(88 |
) |
|
|
1,511 |
|
|
|
3,675 |
|
|
(59 |
) |
Automotive |
|
|
4 |
|
|
|
10 |
|
|
(60 |
) |
|
|
14 |
|
|
|
13 |
|
|
8 |
|
Other businesses |
|
|
2,397 |
|
|
|
2,624 |
|
|
(9 |
) |
|
|
35,751 |
|
|
|
61,611 |
|
|
(42 |
) |
Corporate office |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
$ |
31,460 |
|
|
$ |
11,032 |
|
|
— |
|
|
$ |
86,941 |
|
|
$ |
149,105 |
|
|
(42 |
) |
Operating Income (Loss) before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Education |
|
$ |
25,225 |
|
|
$ |
24,399 |
|
|
3 |
|
|
$ |
134,246 |
|
|
$ |
119,024 |
|
|
13 |
|
Television broadcasting |
|
|
79,850 |
|
|
|
41,580 |
|
|
92 |
|
|
|
206,595 |
|
|
|
139,388 |
|
|
48 |
|
Manufacturing |
|
|
8,972 |
|
|
|
7,991 |
|
|
12 |
|
|
|
29,188 |
|
|
|
47,010 |
|
|
(38 |
) |
Healthcare |
|
|
17,915 |
|
|
|
7,534 |
|
|
— |
|
|
|
52,396 |
|
|
|
27,520 |
|
|
90 |
|
Automotive |
|
|
9,100 |
|
|
|
10,728 |
|
|
(15 |
) |
|
|
38,029 |
|
|
|
39,271 |
|
|
(3 |
) |
Other businesses |
|
|
(21,645 |
) |
|
|
(24,687 |
) |
|
12 |
|
|
|
(99,101 |
) |
|
|
(98,115 |
) |
|
(1 |
) |
Corporate office |
|
|
(15,454 |
) |
|
|
(15,719 |
) |
|
2 |
|
|
|
(58,908 |
) |
|
|
(55,600 |
) |
|
(6 |
) |
|
|
$ |
103,963 |
|
|
$ |
51,826 |
|
|
— |
|
|
$ |
302,445 |
|
|
$ |
218,498 |
|
|
38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended |
|
|
|
Twelve Months Ended |
|
|
||||||||||||||
|
|
December 31 |
|
% |
|
December 31 |
|
% |
||||||||||||||
(in thousands) |
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
|||||||||||
Depreciation |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Education |
|
$ |
8,322 |
|
|
$ |
9,759 |
|
|
(15 |
) |
|
$ |
35,058 |
|
|
$ |
38,187 |
|
|
(8 |
) |
Television broadcasting |
|
|
2,680 |
|
|
|
2,981 |
|
|
(10 |
) |
|
|
11,174 |
|
|
|
12,224 |
|
|
(9 |
) |
Manufacturing |
|
|
2,756 |
|
|
|
2,496 |
|
|
10 |
|
|
|
10,983 |
|
|
|
9,453 |
|
|
16 |
|
Healthcare |
|
|
1,828 |
|
|
|
1,673 |
|
|
9 |
|
|
|
6,859 |
|
|
|
5,475 |
|
|
25 |
|
Automotive |
|
|
1,756 |
|
|
|
1,612 |
|
|
9 |
|
|
|
6,959 |
|
|
|
5,177 |
|
|
34 |
|
Other businesses |
|
|
3,583 |
|
|
|
4,059 |
|
|
(12 |
) |
|
|
15,492 |
|
|
|
14,941 |
|
|
4 |
|
Corporate office |
|
|
89 |
|
|
|
149 |
|
|
(40 |
) |
|
|
521 |
|
|
|
607 |
|
|
(14 |
) |
|
|
$ |
21,014 |
|
|
$ |
22,729 |
|
|
(8 |
) |
|
$ |
87,046 |
|
|
$ |
86,064 |
|
|
1 |
|
Pension Expense |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Education |
|
$ |
4,466 |
|
|
$ |
2,227 |
|
|
— |
|
|
$ |
17,733 |
|
|
$ |
8,907 |
|
|
99 |
|
Television broadcasting |
|
|
1,472 |
|
|
|
833 |
|
|
77 |
|
|
|
6,055 |
|
|
|
3,331 |
|
|
82 |
|
Manufacturing |
|
|
980 |
|
|
|
279 |
|
|
— |
|
|
|
2,877 |
|
|
|
1,115 |
|
|
— |
|
Healthcare |
|
|
4,890 |
|
|
|
3,520 |
|
|
39 |
|
|
|
19,303 |
|
|
|
14,083 |
|
|
37 |
|
Automotive |
|
|
30 |
|
|
|
9 |
|
|
— |
|
|
|
116 |
|
|
|
35 |
|
|
— |
|
Other businesses |
|
|
1,940 |
|
|
|
661 |
|
|
— |
|
|
|
7,517 |
|
|
|
2,508 |
|
|
— |
|
Corporate office |
|
|
894 |
|
|
|
952 |
|
|
(6 |
) |
|
|
3,937 |
|
|
|
3,808 |
|
|
3 |
|
|
|
$ |
14,672 |
|
|
$ |
8,481 |
|
|
73 |
|
|
$ |
57,538 |
|
|
$ |
33,787 |
|
|
70 |
|
Adjusted Operating Cash Flow (non-GAAP)(1) |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Education |
|
$ |
38,013 |
|
|
$ |
36,385 |
|
|
4 |
|
|
$ |
187,037 |
|
|
$ |
166,118 |
|
|
13 |
|
Television broadcasting |
|
|
84,002 |
|
|
|
45,394 |
|
|
85 |
|
|
|
223,824 |
|
|
|
154,943 |
|
|
44 |
|
Manufacturing |
|
|
12,708 |
|
|
|
10,766 |
|
|
18 |
|
|
|
43,048 |
|
|
|
57,578 |
|
|
(25 |
) |
Healthcare |
|
|
24,633 |
|
|
|
12,727 |
|
|
94 |
|
|
|
78,558 |
|
|
|
47,078 |
|
|
67 |
|
Automotive |
|
|
10,886 |
|
|
|
12,349 |
|
|
(12 |
) |
|
|
45,104 |
|
|
|
44,483 |
|
|
1 |
|
Other businesses |
|
|
(16,122 |
) |
|
|
(19,967 |
) |
|
19 |
|
|
|
(76,092 |
) |
|
|
(80,666 |
) |
|
6 |
|
Corporate office |
|
|
(14,471 |
) |
|
|
(14,618 |
) |
|
1 |
|
|
|
(54,450 |
) |
|
|
(51,185 |
) |
|
(6 |
) |
|
|
$ |
139,649 |
|
|
$ |
83,036 |
|
|
68 |
|
|
$ |
447,029 |
|
|
$ |
338,349 |
|
|
32 |
|
____________ |
||
(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 |
|
|
|
Twelve Months Ended |
|
|
||||||||||||||
|
|
December 31 |
|
% |
|
December 31 |
|
% |
||||||||||||||
(in thousands) |
|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
||||||||||
Operating Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Kaplan international |
|
$ |
260,374 |
|
|
$ |
252,164 |
|
|
3 |
|
|
$ |
1,074,207 |
|
|
$ |
966,879 |
|
|
11 |
|
Higher education |
|
|
77,997 |
|
|
|
76,404 |
|
|
2 |
|
|
|
324,815 |
|
|
|
326,961 |
|
|
(1 |
) |
Supplemental education |
|
|
70,241 |
|
|
|
66,241 |
|
|
6 |
|
|
|
291,630 |
|
|
|
292,776 |
|
|
0 |
|
Kaplan corporate and other |
|
|
22 |
|
|
|
2,652 |
|
|
(99 |
) |
|
|
5,761 |
|
|
|
11,012 |
|
|
(48 |
) |
Intersegment elimination |
|
|
(443 |
) |
|
|
(1,985 |
) |
|
— |
|
|
|
(4,635 |
) |
|
|
(10,047 |
) |
|
— |
|
|
|
$ |
408,191 |
|
|
$ |
395,476 |
|
|
3 |
|
|
$ |
1,691,778 |
|
|
$ |
1,587,581 |
|
|
7 |
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Kaplan international |
|
$ |
241,349 |
|
|
$ |
228,906 |
|
|
5 |
|
|
$ |
972,508 |
|
|
$ |
879,349 |
|
|
11 |
|
Higher education |
|
|
68,505 |
|
|
|
70,805 |
|
|
(3 |
) |
|
|
284,065 |
|
|
|
288,019 |
|
|
(1 |
) |
Supplemental education |
|
|
64,745 |
|
|
|
60,761 |
|
|
7 |
|
|
|
264,696 |
|
|
|
270,304 |
|
|
(2 |
) |
Kaplan corporate and other |
|
|
8,813 |
|
|
|
12,469 |
|
|
(29 |
) |
|
|
40,909 |
|
|
|
40,903 |
|
|
0 |
|
Amortization of intangible assets |
|
|
2,220 |
|
|
|
2,943 |
|
|
(25 |
) |
|
|
10,487 |
|
|
|
14,076 |
|
|
(25 |
) |
Impairment of long-lived assets |
|
|
22,930 |
|
|
|
— |
|
|
— |
|
|
|
22,930 |
|
|
|
477 |
|
|
— |
|
Intersegment elimination |
|
|
(446 |
) |
|
|
(1,864 |
) |
|
— |
|
|
|
(4,646 |
) |
|
|
(10,018 |
) |
|
— |
|
|
|
$ |
408,116 |
|
|
$ |
374,020 |
|
|
9 |
|
|
$ |
1,590,949 |
|
|
$ |
1,483,110 |
|
|
7 |
|
Operating Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Kaplan international |
|
$ |
19,025 |
|
|
$ |
23,258 |
|
|
(18 |
) |
|
$ |
101,699 |
|
|
$ |
87,530 |
|
|
16 |
|
Higher education |
|
|
9,492 |
|
|
|
5,599 |
|
|
70 |
|
|
|
40,750 |
|
|
|
38,942 |
|
|
5 |
|
Supplemental education |
|
|
5,496 |
|
|
|
5,480 |
|
|
0 |
|
|
|
26,934 |
|
|
|
22,472 |
|
|
20 |
|
Kaplan corporate and other |
|
|
(8,791 |
) |
|
|
(9,817 |
) |
|
10 |
|
|
|
(35,148 |
) |
|
|
(29,891 |
) |
|
(18 |
) |
Amortization of intangible assets |
|
|
(2,220 |
) |
|
|
(2,943 |
) |
|
25 |
|
|
|
(10,487 |
) |
|
|
(14,076 |
) |
|
25 |
|
Impairment of long-lived assets |
|
|
(22,930 |
) |
|
|
— |
|
|
— |
|
|
|
(22,930 |
) |
|
|
(477 |
) |
|
— |
|
Intersegment elimination |
|
|
3 |
|
|
|
(121 |
) |
|
— |
|
|
|
11 |
|
|
|
(29 |
) |
|
— |
|
|
|
$ |
75 |
|
|
$ |
21,456 |
|
|
— |
|
|
$ |
100,829 |
|
|
$ |
104,471 |
|
|
(3 |
) |
Operating Income (Loss) before Amortization of Intangible Assets and Impairment of Long-Lived Assets |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Kaplan international |
|
$ |
19,025 |
|
|
$ |
23,258 |
|
|
(18 |
) |
|
$ |
101,699 |
|
|
$ |
87,530 |
|
|
16 |
|
Higher education |
|
|
9,492 |
|
|
|
5,599 |
|
|
70 |
|
|
|
40,750 |
|
|
|
38,942 |
|
|
5 |
|
Supplemental education |
|
|
5,496 |
|
|
|
5,480 |
|
|
0 |
|
|
|
26,934 |
|
|
|
22,472 |
|
|
20 |
|
Kaplan corporate and other |
|
|
(8,791 |
) |
|
|
(9,817 |
) |
|
10 |
|
|
|
(35,148 |
) |
|
|
(29,891 |
) |
|
(18 |
) |
Intersegment elimination |
|
|
3 |
|
|
|
(121 |
) |
|
— |
|
|
|
11 |
|
|
|
(29 |
) |
|
— |
|
|
|
$ |
25,225 |
|
|
$ |
24,399 |
|
|
3 |
|
|
$ |
134,246 |
|
|
$ |
119,024 |
|
|
13 |
|
Depreciation |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Kaplan international |
|
$ |
6,948 |
|
|
$ |
7,669 |
|
|
(9 |
) |
|
$ |
28,683 |
|
|
$ |
28,501 |
|
|
1 |
|
Higher education |
|
|
534 |
|
|
|
985 |
|
|
(46 |
) |
|
|
2,825 |
|
|
|
4,416 |
|
|
(36 |
) |
Supplemental education |
|
|
834 |
|
|
|
1,078 |
|
|
(23 |
) |
|
|
3,487 |
|
|
|
5,165 |
|
|
(32 |
) |
Kaplan corporate and other |
|
|
6 |
|
|
|
27 |
|
|
(78 |
) |
|
|
63 |
|
|
|
105 |
|
|
(40 |
) |
|
|
$ |
8,322 |
|
|
$ |
9,759 |
|
|
(15 |
) |
|
$ |
35,058 |
|
|
$ |
38,187 |
|
|
(8 |
) |
Pension Expense |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Kaplan international |
|
$ |
177 |
|
|
$ |
81 |
|
|
— |
|
|
$ |
704 |
|
|
$ |
325 |
|
|
— |
|
Higher education |
|
|
1,891 |
|
|
|
934 |
|
|
— |
|
|
|
7,620 |
|
|
|
3,737 |
|
|
— |
|
Supplemental education |
|
|
1,974 |
|
|
|
1,037 |
|
|
90 |
|
|
|
7,848 |
|
|
|
4,147 |
|
|
89 |
|
Kaplan corporate and other |
|
|
424 |
|
|
|
175 |
|
|
— |
|
|
|
1,561 |
|
|
|
698 |
|
|
— |
|
|
|
$ |
4,466 |
|
|
$ |
2,227 |
|
|
— |
|
|
$ |
17,733 |
|
|
$ |
8,907 |
|
|
99 |
|
Adjusted Operating Cash Flow (non-GAAP)(1) |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Kaplan international |
|
$ |
26,150 |
|
|
$ |
31,008 |
|
|
(16 |
) |
|
$ |
131,086 |
|
|
$ |
116,356 |
|
|
13 |
|
Higher education |
|
|
11,917 |
|
|
|
7,518 |
|
|
59 |
|
|
|
51,195 |
|
|
|
47,095 |
|
|
9 |
|
Supplemental education |
|
|
8,304 |
|
|
|
7,595 |
|
|
9 |
|
|
|
38,269 |
|
|
|
31,784 |
|
|
20 |
|
Kaplan corporate and other |
|
|
(8,361 |
) |
|
|
(9,615 |
) |
|
13 |
|
|
|
(33,524 |
) |
|
|
(29,088 |
) |
|
(15 |
) |
Intersegment elimination |
|
|
3 |
|
|
|
(121 |
) |
|
— |
|
|
|
11 |
|
|
|
(29 |
) |
|
— |
|
|
|
$ |
38,013 |
|
|
$ |
36,385 |
|
|
4 |
|
|
$ |
187,037 |
|
|
$ |
166,118 |
|
|
13 |
|
____________ |
||
(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 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 following tables reconcile the non-GAAP financial measures for Net income, excluding certain items, to the most directly comparable GAAP measures:
|
Three Months Ended December 31 |
||||||||||||||||||||||
|
2024 |
|
2023 |
||||||||||||||||||||
(in thousands, except per share amounts) |
Income
|
|
Income
|
|
Net
|
|
Income
|
|
Income
|
|
Net
|
||||||||||||
Amounts attributable to Graham Holdings Company Common Stockholders |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
As reported |
$ |
757,592 |
|
|
$ |
206,000 |
|
|
$ |
551,592 |
|
|
$ |
72,590 |
|
|
$ |
16,900 |
|
|
$ |
55,690 |
|
Attributable to noncontrolling interests |
|
|
|
|
|
(2,801 |
) |
|
|
|
|
|
|
(2,431 |
) |
||||||||
Attributable to Graham Holdings Company Stockholders |
|
|
|
|
|
548,791 |
|
|
|
|
|
|
|
53,259 |
|
||||||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net credit related to fair value changes in contingent consideration from prior acquisitions |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,267 |
) |
|
|
(330 |
) |
|
|
(1,937 |
) |
Goodwill and other long-lived asset impairment charges |
|
23,536 |
|
|
|
5,311 |
|
|
|
18,225 |
|
|
|
— |
|
|
|
(3,874 |
) |
|
|
3,874 |
|
Settlement gain related to retiree annuity pension purchase |
|
(653,427 |
) |
|
|
(167,285 |
) |
|
|
(486,142 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Charges related to non-operating Separation Incentive Programs |
|
505 |
|
|
|
129 |
|
|
|
376 |
|
|
|
240 |
|
|
|
61 |
|
|
|
179 |
|
Net gains on marketable equity securities |
|
(27,018 |
) |
|
|
(6,927 |
) |
|
|
(20,091 |
) |
|
|
(24,639 |
) |
|
|
(5,491 |
) |
|
|
(19,148 |
) |
Net (gains) losses of affiliates whose operations are not managed by the Company |
|
(1,380 |
) |
|
|
(354 |
) |
|
|
(1,026 |
) |
|
|
6,391 |
|
|
|
1,637 |
|
|
|
4,754 |
|
Non-operating loss, from write-downs and impairments of cost method investments |
|
1,718 |
|
|
|
441 |
|
|
|
1,277 |
|
|
|
500 |
|
|
|
111 |
|
|
|
389 |
|
Interest expense related to the fair value adjustment of the mandatorily redeemable noncontrolling interest |
|
34,150 |
|
|
|
(3,171 |
) |
|
|
37,321 |
|
|
|
8,701 |
|
|
|
377 |
|
|
|
8,324 |
|
Net Income, adjusted (non-GAAP) |
|
|
|
|
$ |
98,731 |
|
|
|
|
|
|
$ |
49,694 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Per share information attributable to Graham Holdings Company Common Stockholders |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Diluted income per common share, as reported |
|
|
|
|
$ |
125.55 |
|
|
|
|
|
|
$ |
11.72 |
|
||||||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net credit related to fair value changes in contingent consideration from prior acquisitions |
|
|
|
|
|
— |
|
|
|
|
|
|
|
(0.43 |
) |
||||||||
Goodwill and other long-lived asset impairment charges |
|
|
|
|
|
4.17 |
|
|
|
|
|
|
|
0.85 |
|
||||||||
Settlement gain related to retiree annuity pension purchase |
|
|
|
|
|
(111.23 |
) |
|
|
|
|
|
|
— |
|
||||||||
Charges related to non-operating Separation Incentive Programs |
|
|
|
|
|
0.09 |
|
|
|
|
|
|
|
0.04 |
|
||||||||
Net gains on marketable equity securities |
|
|
|
|
|
(4.60 |
) |
|
|
|
|
|
|
(4.21 |
) |
||||||||
Net (gains) losses of affiliates whose operations are not managed by the Company |
|
|
|
|
|
(0.23 |
) |
|
|
|
|
|
|
1.05 |
|
||||||||
Non-operating loss, from write-downs and impairments of cost method investments |
|
|
|
|
|
0.29 |
|
|
|
|
|
|
|
0.09 |
|
||||||||
Interest expense related to the fair value adjustment of the mandatorily redeemable noncontrolling interest |
|
|
|
|
|
8.54 |
|
|
|
|
|
|
|
1.83 |
|
||||||||
Diluted income per common share, adjusted (non-GAAP) |
|
|
|
|
$ |
22.58 |
|
|
|
|
|
|
$ |
10.94 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
The adjusted diluted per share amounts may not compute due to rounding. |
|||||||||||||||||||||||
|
Twelve Months Ended December 31 |
||||||||||||||||||||||
|
2024 |
|
2023 |
||||||||||||||||||||
(in thousands, except per share amounts) |
Income
|
|
Income
|
|
Net
|
|
Income
|
|
Income
|
|
Net
|
||||||||||||
Amounts attributable to Graham Holdings Company Common Stockholders |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
As reported |
$ |
1,024,710 |
|
|
$ |
292,100 |
|
|
$ |
732,610 |
|
|
$ |
299,004 |
|
|
$ |
87,300 |
|
|
$ |
211,704 |
|
Attributable to noncontrolling interests |
|
|
|
|
|
(7,976 |
) |
|
|
|
|
|
|
(6,416 |
) |
||||||||
Attributable to Graham Holdings Company Stockholders |
|
|
|
|
$ |
724,634 |
|
|
|
|
|
|
$ |
205,288 |
|
||||||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net credit related to fair value changes in contingent consideration from prior acquisitions |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,955 |
) |
|
|
(473 |
) |
|
|
(6,482 |
) |
Goodwill and other long-lived asset impairment charges |
|
49,822 |
|
|
|
10,377 |
|
|
|
39,445 |
|
|
|
99,066 |
|
|
|
10,204 |
|
|
|
88,862 |
|
Settlement gain related to retiree annuity pension purchase |
|
(653,427 |
) |
|
|
(167,285 |
) |
|
|
(486,142 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Charges related to non-operating Voluntary Retirement Incentive Program and Separation Incentive Programs |
|
20,998 |
|
|
|
5,375 |
|
|
|
15,623 |
|
|
|
9,886 |
|
|
|
2,542 |
|
|
|
7,344 |
|
Net gains on marketable equity securities |
|
(181,295 |
) |
|
|
(46,430 |
) |
|
|
(134,865 |
) |
|
|
(138,067 |
) |
|
|
(35,351 |
) |
|
|
(102,716 |
) |
Net losses of affiliates whose operations are not managed by the Company |
|
3,543 |
|
|
|
907 |
|
|
|
2,636 |
|
|
|
16,047 |
|
|
|
4,178 |
|
|
|
11,869 |
|
Gain on sale of certain businesses and websites |
|
(7,246 |
) |
|
|
(1,956 |
) |
|
|
(5,290 |
) |
|
|
(10,033 |
) |
|
|
(2,641 |
) |
|
|
(7,392 |
) |
Non-operating loss (gain), net, from valuation adjustments, sales and impairments of cost and equity method investments |
|
16,698 |
|
|
|
4,274 |
|
|
|
12,424 |
|
|
|
(3,435 |
) |
|
|
(896 |
) |
|
|
(2,539 |
) |
Credit to interest expense resulting from gains realized related to the termination of interest rate swaps |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,581 |
) |
|
|
(1,252 |
) |
|
|
(3,329 |
) |
Interest expense related to the fair value adjustment of the mandatorily redeemable noncontrolling interest |
|
119,295 |
|
|
|
5,569 |
|
|
|
113,726 |
|
|
|
10,122 |
|
|
|
529 |
|
|
|
9,593 |
|
Net Income, adjusted (non-GAAP) |
|
|
|
|
$ |
282,191 |
|
|
|
|
|
|
$ |
200,498 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Per share information attributable to Graham Holdings Company Common Stockholders |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Diluted income per common share, as reported |
|
|
|
|
$ |
163.40 |
|
|
|
|
|
|
$ |
43.82 |
|
||||||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net credit related to fair value changes in contingent consideration from prior acquisitions |
|
|
|
|
|
— |
|
|
|
|
|
|
|
(1.38 |
) |
||||||||
Goodwill and other long-lived asset impairment charges |
|
|
|
|
|
8.89 |
|
|
|
|
|
|
|
18.97 |
|
||||||||
Settlement gain related to retiree annuity pension purchase |
|
|
|
|
|
(109.62 |
) |
|
|
|
|
|
|
— |
|
||||||||
Charges related to non-operating Voluntary Retirement Incentive Program and Separation Incentive Programs |
|
|
|
|
|
3.52 |
|
|
|
|
|
|
|
1.57 |
|
||||||||
Net gains on marketable equity securities |
|
|
|
|
|
(30.41 |
) |
|
|
|
|
|
|
(21.93 |
) |
||||||||
Net losses of affiliates whose operations are not managed by the Company |
|
|
|
|
|
0.59 |
|
|
|
|
|
|
|
2.53 |
|
||||||||
Gain on sale of certain businesses and websites |
|
|
|
|
|
(1.19 |
) |
|
|
|
|
|
|
(1.59 |
) |
||||||||
Non-operating loss (gain), net, from valuation adjustments, sales and impairments of cost and equity method investments |
|
|
|
|
|
2.80 |
|
|
|
|
|
|
|
(0.54 |
) |
||||||||
Credit to interest expense resulting from gains realized related to the termination of interest rate swaps |
|
|
|
|
|
— |
|
|
|
|
|
|
|
(0.72 |
) |
||||||||
Interest expense related to the fair value adjustment of the mandatorily redeemable noncontrolling interest |
|
|
|
|
|
25.65 |
|
|
|
|
|
|
|
2.05 |
|
||||||||
Diluted income per common share, adjusted (non-GAAP) |
|
|
|
|
$ |
63.63 |
|
|
|
|
|
|
$ |
42.78 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
The adjusted diluted per share amounts may not compute due to rounding. |
|||||||||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20250225659232/en/
Wallace R. Cooney
(703) 345-6470
Source: Graham Holdings Company