Graham Holdings Company Reports 2023 and Fourth Quarter Earnings
- None.
- Operating income decreased in 2023 due to goodwill impairment charges at World of Good Brands and Dekko, as well as declines in television broadcasting and manufacturing.
- Adjusted operating cash flow declined in 2023, mainly in television broadcasting, manufacturing, and other businesses.
- Revenue decreased in television broadcasting by 19% in Q4 2023, with a decline in political advertising revenue.
- Manufacturing revenues decreased by 14% in Q4 2023, attributed to lower revenues at Hoover, Dekko, and Joyce.
- Operating results for other businesses declined in Q4 2023, excluding former Leaf businesses, due to increased losses.
- Net interest expense increased in Q4 2023, primarily due to increased debt at automotive dealerships and higher interest rates on variable debt.
Insights
The reported revenue growth of Graham Holdings Company, with a 12% increase in annual revenue, indicates a robust expansion across its diversified business sectors, particularly in education, healthcare and automotive. However, this positive trend is juxtaposed against a decrease in operating income, from $83.9 million to $69.4 million year-over-year, primarily due to goodwill impairment charges and declines in television broadcasting and manufacturing.
From a financial perspective, the decline in operating income despite revenue growth suggests margin compression, which could be indicative of rising costs or less profitable revenue streams gaining prominence. The adjusted operating cash flow decline further underscores potential liquidity and efficiency concerns.
The Company's debt position has increased year-over-year, with borrowings rising from $726.4 million to $811.8 million, albeit at a higher average interest rate. This increase in leverage, especially in a higher interest rate environment, could affect future profitability due to increased interest expenses. However, the Company's cash and investment holdings have also grown, which may provide a buffer against financial stress.
Share repurchase activities, including the purchase of 100,263 shares at a cost of $62.1 million, reflect a return of capital to shareholders and a signal of management's confidence in the company's intrinsic value. The remaining authorization for share repurchases suggests potential future buyback activities, which could support the stock price.
The reported results highlight a shifting landscape within Graham Holdings Company's diverse portfolio. The education sector's revenue increase, particularly from Kaplan's international operations, suggests a recovering demand for educational services post-pandemic, especially in international markets like Australia and Singapore.
However, the television broadcasting sector's 19% decrease in revenue, primarily due to a decline in political advertising revenue, reflects the cyclical nature of political ad spending and may not be indicative of a long-term trend. The digital advertising revenue increase within this sector could represent a strategic pivot towards more sustainable revenue streams.
The healthcare sector's 34% revenue increase is notable, driven by acquisitions and growth in home health and hospice services. This sector's performance is a positive sign, indicating resilience and potential for continued growth, which aligns with broader industry trends towards healthcare services and technology.
The manufacturing sector's decline is concerning, particularly the decreased demand in the commercial office electrical products sector, which may reflect broader economic challenges or sector-specific headwinds.
The financial results of Graham Holdings Company provide a microcosmic view of the broader economic environment. The mixed results across sectors may reflect underlying economic trends, such as increased education and healthcare spending, which could be driven by demographic shifts and technological advancements.
The decline in television broadcasting and manufacturing revenues might be indicative of structural changes in media consumption and the global manufacturing landscape. The impairment charges in certain divisions are a reminder of the risks associated with acquisitions and the importance of continuous evaluation of asset values.
The pension surplus increase is a positive sign of prudent financial management, especially in an era of market volatility and uncertainty regarding retirement security. This surplus could provide a competitive advantage in attracting and retaining talent, which is crucial in the current labor market.
Division Operating Results
Revenue for 2023 was
For the fourth quarter of 2023, revenue was
Acquisitions and Dispositions of Businesses
There were no significant business acquisitions or dispositions during the fourth quarter of 2023.
Debt, Cash and Marketable Equity Securities
At December 31, 2023, the Company had
At December 31, 2022, the Company had
The Company recognized
Common Stock Repurchases
During the fourth quarter of 2023, the Company purchased a total of 100,263 shares of its Class B common stock at a cost of
Pension Plan
At December 31, 2023, the Company had a pension surplus of
Overall Company Results
The Company reported net income attributable to common shares of
The results for 2023 and 2022 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 2023 Results
Division Results
Education
For the fourth quarter of 2023, education division revenue totaled
Kaplan International revenue increased
Higher Education revenue in the fourth quarter of 2023 was flat compared to the same period of 2022. Kaplan recorded
Supplemental Education revenue declined
In the fourth quarter of 2022, Kaplan implemented a Separation Incentive Program (SIP) to reduce the number of employees at Supplemental Education and Higher Education, which was funded by the assets of the Company’s pension plan. In connection with the SIP, the Company recorded
Kaplan corporate and other expenses increased in the fourth quarter of 2023 due to higher incentive compensation costs compared to the fourth quarter of 2022.
Television Broadcasting
For the fourth quarter of 2023, revenue decreased
Manufacturing
Manufacturing revenues decreased
Healthcare
Healthcare revenues increased
Graham Healthcare Group (GHG) recorded pension expense of
GHG recorded equity in earnings of
Automotive
Revenues for the fourth quarter of 2023 increased due to the acquisition of the Toyota of
Other Businesses
A summary of revenue by category for other businesses:
|
|
Three Months Ended |
|
|
|||||
|
|
December 31 |
|
% |
|||||
(in thousands) |
|
2023 |
|
|
2022 |
|
Change |
||
Operating Revenues |
|
|
|
|
|
|
|||
Retail (1) |
|
$ |
34,108 |
|
$ |
41,335 |
|
(17 |
) |
Media (2) |
|
|
28,131 |
|
|
30,449 |
|
(8 |
) |
Specialty (3) |
|
|
38,304 |
|
|
36,150 |
|
6 |
|
|
|
$ |
100,543 |
|
$ |
107,934 |
|
(7 |
) |
____________ |
||
(1) |
Includes Society6 and Saatchi Art (formerly Leaf Marketplace) and Framebridge |
|
(2) |
Includes WGB (formerly Leaf Media), Code3, Slate, Foreign Policy, Pinna and City Cast |
|
(3) |
Includes Clyde’s Restaurant Group, Decile and CyberVista |
|
Overall, revenue from other businesses declined
Operating results improved in the fourth quarter of 2023 due to the
In the fourth quarter of 2022, the former Leaf businesses recorded a net depreciation expense credit of
Equity in Losses of Affiliates
Overall, the Company recorded equity in losses 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 2023, the Company recorded
Other Non-Operating (Expense) Income
For the fourth quarter of 2023, the Company recorded other non-operating expense, net, of
Earnings Per Share
The calculation of diluted earnings per share for the fourth quarter of 2023 was based on 4,515,022 weighted average shares outstanding compared to 4,785,904 for the fourth quarter of 2022.
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 |
|
|||||||
|
December 31 |
% |
|||||||
(in thousands, except per share amounts) |
|
2023 |
|
|
|
2022 |
|
Change |
|
Operating revenues |
$ |
1,166,813 |
|
|
$ |
1,064,032 |
|
10 |
|
Operating expenses |
|
1,092,258 |
|
|
|
960,808 |
|
14 |
|
Depreciation of property, plant and equipment |
|
22,729 |
|
|
|
14,752 |
|
54 |
|
Amortization of intangible assets |
|
11,032 |
|
|
|
14,415 |
|
(23 |
) |
Impairment of goodwill and other long-lived assets |
|
— |
|
|
|
128,990 |
|
— |
|
Operating income (loss) |
|
40,794 |
|
|
|
(54,933 |
) |
— |
|
Equity in losses of affiliates, net |
|
(2,938 |
) |
|
|
(5,757 |
) |
(49 |
) |
Interest income |
|
2,384 |
|
|
|
1,012 |
|
— |
|
Interest expense |
|
(25,423 |
) |
|
|
(15,434 |
) |
65 |
|
Non-operating pension and postretirement benefit income, net |
|
36,499 |
|
|
|
45,876 |
|
(20 |
) |
Gain on marketable equity securities, net |
|
24,638 |
|
|
|
33,289 |
|
(26 |
) |
Other (expense) income, net |
|
(3,364 |
) |
|
|
27,090 |
|
— |
|
Income before income taxes |
|
72,590 |
|
|
|
31,143 |
|
— |
|
Provision for income taxes |
|
16,900 |
|
|
|
24,500 |
|
(31 |
) |
Net income |
|
55,690 |
|
|
|
6,643 |
|
— |
|
Net income attributable to noncontrolling interests |
|
(2,431 |
) |
|
|
(483 |
) |
— |
|
Net Income Attributable to Graham Holdings Company Common Stockholders |
$ |
53,259 |
|
|
$ |
6,160 |
|
— |
|
Per Share Information Attributable to Graham Holdings Company Common Stockholders |
|
|
|
|
|||||
Basic net income per common share |
$ |
11.76 |
|
|
$ |
1.28 |
|
— |
|
Basic average number of common shares outstanding |
|
4,498 |
|
|
|
4,771 |
|
|
|
Diluted net income per common share |
$ |
11.72 |
|
|
$ |
1.28 |
|
— |
|
Diluted average number of common shares outstanding |
|
4,515 |
|
|
|
4,786 |
|
|
|
GRAHAM HOLDINGS COMPANY |
|||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||
(Unaudited) |
|||||||||
|
|
|
|||||||
|
Twelve Months Ended |
|
|||||||
|
December 31 |
% |
|||||||
(in thousands, except per share amounts) |
|
2023 |
|
|
|
2022 |
|
Change |
|
Operating revenues |
$ |
4,414,877 |
|
|
$ |
3,924,493 |
|
12 |
|
Operating expenses |
|
4,110,315 |
|
|
|
3,579,457 |
|
15 |
|
Depreciation of property, plant and equipment |
|
86,064 |
|
|
|
73,297 |
|
17 |
|
Amortization of intangible assets |
|
50,039 |
|
|
|
58,851 |
|
(15 |
) |
Impairment of goodwill and other long-lived assets |
|
99,066 |
|
|
|
128,990 |
|
(23 |
) |
Operating income |
|
69,393 |
|
|
|
83,898 |
|
(17 |
) |
Equity in losses of affiliates, net |
|
(5,183 |
) |
|
|
(2,837 |
) |
83 |
|
Interest income |
|
7,122 |
|
|
|
3,226 |
|
— |
|
Interest expense |
|
(63,301 |
) |
|
|
(54,403 |
) |
16 |
|
Non-operating pension and postretirement benefit income, net |
|
133,812 |
|
|
|
197,939 |
|
(32 |
) |
Gain (loss) on marketable equity securities, net |
|
138,067 |
|
|
|
(139,589 |
) |
— |
|
Other income, net |
|
19,094 |
|
|
|
33,500 |
|
(43 |
) |
Income before income taxes |
|
299,004 |
|
|
|
121,734 |
|
— |
|
Provision for income taxes |
|
87,300 |
|
|
|
51,300 |
|
70 |
|
Net income |
|
211,704 |
|
|
|
70,434 |
|
— |
|
Net income attributable to noncontrolling interests |
|
(6,416 |
) |
|
|
(3,355 |
) |
91 |
|
Net Income Attributable to Graham Holdings Company Common Stockholders |
$ |
205,288 |
|
|
$ |
67,079 |
|
— |
|
Per Share Information Attributable to Graham Holdings Company Common Stockholders |
|
|
|
|
|||||
Basic net income per common share |
$ |
43.96 |
|
|
$ |
13.83 |
|
— |
|
Basic average number of common shares outstanding |
|
4,639 |
|
|
|
4,823 |
|
|
|
Diluted net income per common share |
$ |
43.82 |
|
|
$ |
13.79 |
|
— |
|
Diluted average number of common shares outstanding |
|
4,654 |
|
|
|
4,836 |
|
|
|
GRAHAM HOLDINGS COMPANY |
||||||||||||||||||||||
BUSINESS DIVISION INFORMATION |
||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended |
|
|
|
Twelve Months Ended |
|
|
||||||||||||||
|
|
December 31 |
|
% |
|
December 31 |
|
% |
||||||||||||||
(in thousands) |
|
2023 |
|
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|||
Operating Revenues |
|
|
|
|
|
|
|
|||||||||||||||
Education |
$ |
395,476 |
$ |
361,826 |
|
9 |
|
$ |
1,587,581 |
|
$ |
1,427,915 |
|
11 |
|
|||||||
Television broadcasting |
|
|
124,618 |
|
|
|
154,681 |
|
|
(19 |
) |
|
|
472,436 |
|
|
|
535,651 |
|
|
(12 |
) |
Manufacturing |
|
|
104,028 |
|
|
|
120,677 |
|
|
(14 |
) |
|
|
447,910 |
|
|
|
486,643 |
|
|
(8 |
) |
Healthcare |
|
|
127,976 |
|
|
|
95,184 |
|
|
34 |
|
|
|
459,481 |
|
|
|
326,000 |
|
|
41 |
|
Automotive |
|
|
314,642 |
|
|
|
224,220 |
|
|
40 |
|
|
|
1,079,893 |
|
|
|
734,185 |
|
|
47 |
|
Other businesses |
|
|
100,543 |
|
|
|
107,934 |
|
|
(7 |
) |
|
|
369,653 |
|
|
|
416,084 |
|
|
(11 |
) |
Corporate office |
|
|
365 |
|
|
|
— |
|
|
— |
|
|
|
1,580 |
|
|
|
— |
|
|
— |
|
Intersegment elimination |
|
|
(835 |
) |
|
|
(490 |
) |
|
— |
|
|
|
(3,657 |
) |
|
|
(1,985 |
) |
|
— |
|
|
|
$ |
1,166,813 |
|
|
$ |
1,064,032 |
|
|
10 |
|
|
$ |
4,414,877 |
|
|
$ |
3,924,493 |
|
|
12 |
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Education |
|
$ |
374,020 |
|
|
$ |
336,655 |
|
|
11 |
|
|
$ |
1,483,110 |
|
|
$ |
1,344,982 |
|
|
10 |
|
Television broadcasting |
|
|
84,400 |
|
|
|
84,713 |
|
|
0 |
|
|
|
338,498 |
|
|
|
333,772 |
|
|
1 |
|
Manufacturing |
|
|
99,157 |
|
|
|
111,094 |
|
|
(11 |
) |
|
|
464,703 |
|
|
|
452,936 |
|
|
3 |
|
Healthcare |
|
|
121,415 |
|
|
|
98,588 |
|
|
23 |
|
|
|
435,636 |
|
|
|
310,735 |
|
|
40 |
|
Automotive |
|
|
303,924 |
|
|
|
215,080 |
|
|
41 |
|
|
|
1,040,635 |
|
|
|
699,552 |
|
|
49 |
|
Other businesses |
|
|
127,854 |
|
|
|
258,045 |
|
|
(50 |
) |
|
|
529,379 |
|
|
|
644,437 |
|
|
(18 |
) |
Corporate office |
|
|
16,084 |
|
|
|
15,280 |
|
|
5 |
|
|
|
57,180 |
|
|
|
56,166 |
|
|
2 |
|
Intersegment elimination |
|
|
(835 |
) |
|
|
(490 |
) |
|
— |
|
|
|
(3,657 |
) |
|
|
(1,985 |
) |
|
— |
|
|
|
$ |
1,126,019 |
|
|
$ |
1,118,965 |
|
|
1 |
|
|
$ |
4,345,484 |
|
|
$ |
3,840,595 |
|
|
13 |
|
Operating Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Education |
|
$ |
21,456 |
|
|
$ |
25,171 |
|
|
(15 |
) |
|
$ |
104,471 |
|
|
$ |
82,933 |
|
|
26 |
|
Television broadcasting |
|
|
40,218 |
|
|
|
69,968 |
|
|
(43 |
) |
|
|
133,938 |
|
|
|
201,879 |
|
|
(34 |
) |
Manufacturing |
|
|
4,871 |
|
|
|
9,583 |
|
|
(49 |
) |
|
|
(16,793 |
) |
|
|
33,707 |
|
|
— |
|
Healthcare |
|
|
6,561 |
|
|
|
(3,404 |
) |
|
— |
|
|
|
23,845 |
|
|
|
15,265 |
|
|
56 |
|
Automotive |
|
|
10,718 |
|
|
|
9,140 |
|
|
17 |
|
|
|
39,258 |
|
|
|
34,633 |
|
|
13 |
|
Other businesses |
|
|
(27,311 |
) |
|
|
(150,111 |
) |
|
82 |
|
|
|
(159,726 |
) |
|
|
(228,353 |
) |
|
30 |
|
Corporate office |
|
|
(15,719 |
) |
|
|
(15,280 |
) |
|
(3 |
) |
|
|
(55,600 |
) |
|
|
(56,166 |
) |
|
1 |
|
|
|
$ |
40,794 |
|
|
$ |
(54,933 |
) |
|
— |
|
|
$ |
69,393 |
|
|
$ |
83,898 |
|
|
(17 |
) |
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Education |
|
$ |
2,943 |
|
|
$ |
3,980 |
|
|
(26 |
) |
|
$ |
14,553 |
|
|
$ |
16,170 |
|
|
(10 |
) |
Television broadcasting |
|
|
1,362 |
|
|
|
1,360 |
|
|
0 |
|
|
|
5,450 |
|
|
|
5,440 |
|
|
0 |
|
Manufacturing |
|
|
3,120 |
|
|
|
4,969 |
|
|
(37 |
) |
|
|
63,803 |
|
|
|
20,372 |
|
|
— |
|
Healthcare |
|
|
973 |
|
|
|
954 |
|
|
2 |
|
|
|
3,675 |
|
|
|
3,776 |
|
|
(3 |
) |
Automotive |
|
|
10 |
|
|
|
— |
|
|
— |
|
|
|
13 |
|
|
|
— |
|
|
— |
|
Other businesses |
|
|
2,624 |
|
|
|
132,142 |
|
|
(98 |
) |
|
|
61,611 |
|
|
|
142,083 |
|
|
(57 |
) |
Corporate office |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
$ |
11,032 |
|
|
$ |
143,405 |
|
|
(92 |
) |
|
$ |
149,105 |
|
|
$ |
187,841 |
|
|
(21 |
) |
Operating Income (Loss) before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Education |
|
$ |
24,399 |
|
|
$ |
29,151 |
|
|
(16 |
) |
|
$ |
119,024 |
|
|
$ |
99,103 |
|
|
20 |
|
Television broadcasting |
|
|
41,580 |
|
|
|
71,328 |
|
|
(42 |
) |
|
|
139,388 |
|
|
|
207,319 |
|
|
(33 |
) |
Manufacturing |
|
|
7,991 |
|
|
|
14,552 |
|
|
(45 |
) |
|
|
47,010 |
|
|
|
54,079 |
|
|
(13 |
) |
Healthcare |
|
|
7,534 |
|
|
|
(2,450 |
) |
|
— |
|
|
|
27,520 |
|
|
|
19,041 |
|
|
45 |
|
Automotive |
|
|
10,728 |
|
|
|
9,140 |
|
|
17 |
|
|
|
39,271 |
|
|
|
34,633 |
|
|
13 |
|
Other businesses |
|
|
(24,687 |
) |
|
|
(17,969 |
) |
|
(37 |
) |
|
|
(98,115 |
) |
|
|
(86,270 |
) |
|
(14 |
) |
Corporate office |
|
|
(15,719 |
) |
|
|
(15,280 |
) |
|
(3 |
) |
|
|
(55,600 |
) |
|
|
(56,166 |
) |
|
1 |
|
|
|
$ |
51,826 |
|
|
$ |
88,472 |
|
|
(41 |
) |
|
$ |
218,498 |
|
|
$ |
271,739 |
|
|
(20 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended |
|
|
|
Twelve Months Ended |
|
|
||||||||||||||
|
|
December 31 |
|
% |
|
December 31 |
|
% |
||||||||||||||
(in thousands) |
|
2023 |
|
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|||
Depreciation |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Education |
|
$ |
9,759 |
|
|
$ |
8,718 |
|
|
12 |
|
|
$ |
38,187 |
|
|
$ |
34,114 |
|
|
12 |
|
Television broadcasting |
|
|
2,981 |
|
|
|
2,959 |
|
|
1 |
|
|
|
12,224 |
|
|
|
12,294 |
|
|
(1 |
) |
Manufacturing |
|
|
2,496 |
|
|
|
2,290 |
|
|
9 |
|
|
|
9,453 |
|
|
|
9,399 |
|
|
1 |
|
Healthcare |
|
|
1,673 |
|
|
|
2,326 |
|
|
(28 |
) |
|
|
5,475 |
|
|
|
3,781 |
|
|
45 |
|
Automotive |
|
|
1,612 |
|
|
|
1,113 |
|
|
45 |
|
|
|
5,177 |
|
|
|
3,709 |
|
|
40 |
|
Other businesses |
|
|
4,059 |
|
|
|
(2,806 |
) |
|
— |
|
|
|
14,941 |
|
|
|
9,392 |
|
|
59 |
|
Corporate office |
|
|
149 |
|
|
|
152 |
|
|
(2 |
) |
|
|
607 |
|
|
|
608 |
|
|
0 |
|
|
|
$ |
22,729 |
|
|
$ |
14,752 |
|
|
54 |
|
|
$ |
86,064 |
|
|
$ |
73,297 |
|
|
17 |
|
Pension Expense |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Education |
|
$ |
2,227 |
|
|
$ |
2,234 |
|
|
0 |
|
|
$ |
8,907 |
|
|
$ |
8,934 |
|
|
0 |
|
Television broadcasting |
|
|
833 |
|
|
|
888 |
|
|
(6 |
) |
|
|
3,331 |
|
|
|
3,554 |
|
|
(6 |
) |
Manufacturing |
|
|
279 |
|
|
|
276 |
|
|
1 |
|
|
|
1,115 |
|
|
|
1,104 |
|
|
1 |
|
Healthcare |
|
|
3,520 |
|
|
|
10,591 |
|
|
(67 |
) |
|
|
14,083 |
|
|
|
11,008 |
|
|
28 |
|
Automotive |
|
|
9 |
|
|
|
5 |
|
|
80 |
|
|
|
35 |
|
|
|
22 |
|
|
59 |
|
Other businesses |
|
|
661 |
|
|
|
524 |
|
|
26 |
|
|
|
2,508 |
|
|
|
2,073 |
|
|
21 |
|
Corporate office |
|
|
952 |
|
|
|
1,468 |
|
|
(35 |
) |
|
|
3,808 |
|
|
|
5,872 |
|
|
(35 |
) |
|
|
$ |
8,481 |
|
|
$ |
15,986 |
|
|
(47 |
) |
|
$ |
33,787 |
|
|
$ |
32,567 |
|
|
4 |
|
Adjusted Operating Cash Flow (non-GAAP)(1) |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Education |
|
$ |
36,385 |
|
|
$ |
40,103 |
|
|
(9 |
) |
|
$ |
166,118 |
|
|
$ |
142,151 |
|
|
17 |
|
Television broadcasting |
|
|
45,394 |
|
|
|
75,175 |
|
|
(40 |
) |
|
|
154,943 |
|
|
|
223,167 |
|
|
(31 |
) |
Manufacturing |
|
|
10,766 |
|
|
|
17,118 |
|
|
(37 |
) |
|
|
57,578 |
|
|
|
64,582 |
|
|
(11 |
) |
Healthcare |
|
|
12,727 |
|
|
|
10,467 |
|
|
22 |
|
|
|
47,078 |
|
|
|
33,830 |
|
|
39 |
|
Automotive |
|
|
12,349 |
|
|
|
10,258 |
|
|
20 |
|
|
|
44,483 |
|
|
|
38,364 |
|
|
16 |
|
Other businesses |
|
|
(19,967 |
) |
|
|
(20,251 |
) |
|
1 |
|
|
|
(80,666 |
) |
|
|
(74,805 |
) |
|
(8 |
) |
Corporate office |
|
|
(14,618 |
) |
|
|
(13,660 |
) |
|
(7 |
) |
|
|
(51,185 |
) |
|
|
(49,686 |
) |
|
(3 |
) |
|
|
$ |
83,036 |
|
|
$ |
119,210 |
|
|
(30 |
) |
|
$ |
338,349 |
|
|
$ |
377,603 |
|
|
(10 |
) |
____________ |
|||
(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) |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
||
Operating Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Kaplan international |
|
$ |
252,164 |
|
|
$ |
217,770 |
|
|
16 |
|
|
$ |
966,879 |
|
|
$ |
816,239 |
|
|
18 |
|
Higher education |
|
|
76,404 |
|
|
|
76,417 |
|
|
0 |
|
|
|
326,961 |
|
|
|
310,407 |
|
|
5 |
|
Supplemental education |
|
|
66,241 |
|
|
|
68,209 |
|
|
(3 |
) |
|
|
292,776 |
|
|
|
301,625 |
|
|
(3 |
) |
Kaplan corporate and other |
|
|
2,652 |
|
|
|
2,439 |
|
|
9 |
|
|
|
11,012 |
|
|
|
9,853 |
|
|
12 |
|
Intersegment elimination |
|
|
(1,985 |
) |
|
|
(3,009 |
) |
|
— |
|
|
|
(10,047 |
) |
|
|
(10,209 |
) |
|
— |
|
|
|
$ |
395,476 |
|
|
$ |
361,826 |
|
|
9 |
|
|
$ |
1,587,581 |
|
|
$ |
1,427,915 |
|
|
11 |
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Kaplan international |
|
$ |
228,906 |
|
|
$ |
193,834 |
|
|
18 |
|
|
$ |
879,349 |
|
|
$ |
744,173 |
|
|
18 |
|
Higher education |
|
|
70,805 |
|
|
|
69,021 |
|
|
3 |
|
|
|
288,019 |
|
|
|
285,588 |
|
|
1 |
|
Supplemental education |
|
|
60,761 |
|
|
|
64,811 |
|
|
(6 |
) |
|
|
270,304 |
|
|
|
280,556 |
|
|
(4 |
) |
Kaplan corporate and other |
|
|
12,469 |
|
|
|
7,807 |
|
|
60 |
|
|
|
40,903 |
|
|
|
28,659 |
|
|
43 |
|
Amortization of intangible assets |
|
|
2,943 |
|
|
|
3,980 |
|
|
(26 |
) |
|
|
14,076 |
|
|
|
16,170 |
|
|
(13 |
) |
Impairment of long-lived assets |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
477 |
|
|
|
— |
|
|
— |
|
Intersegment elimination |
|
|
(1,864 |
) |
|
|
(2,798 |
) |
|
— |
|
|
|
(10,018 |
) |
|
|
(10,164 |
) |
|
— |
|
|
|
$ |
374,020 |
|
|
$ |
336,655 |
|
|
11 |
|
|
$ |
1,483,110 |
|
|
$ |
1,344,982 |
|
|
10 |
|
Operating Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Kaplan international |
|
$ |
23,258 |
|
|
$ |
23,936 |
|
|
(3 |
) |
|
$ |
87,530 |
|
|
$ |
72,066 |
|
|
21 |
|
Higher education |
|
|
5,599 |
|
|
|
7,396 |
|
|
(24 |
) |
|
|
38,942 |
|
|
|
24,819 |
|
|
57 |
|
Supplemental education |
|
|
5,480 |
|
|
|
3,398 |
|
|
61 |
|
|
|
22,472 |
|
|
|
21,069 |
|
|
7 |
|
Kaplan corporate and other |
|
|
(9,817 |
) |
|
|
(5,368 |
) |
|
(83 |
) |
|
|
(29,891 |
) |
|
|
(18,806 |
) |
|
(59 |
) |
Amortization of intangible assets |
|
|
(2,943 |
) |
|
|
(3,980 |
) |
|
26 |
|
|
|
(14,076 |
) |
|
|
(16,170 |
) |
|
13 |
|
Impairment of long-lived assets |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
(477 |
) |
|
|
— |
|
|
— |
|
Intersegment elimination |
|
|
(121 |
) |
|
|
(211 |
) |
|
— |
|
|
|
(29 |
) |
|
|
(45 |
) |
|
— |
|
|
|
$ |
21,456 |
|
|
$ |
25,171 |
|
|
(15 |
) |
|
$ |
104,471 |
|
|
$ |
82,933 |
|
|
26 |
|
Operating Income (Loss) before Amortization of Intangible Assets and Impairment of Long-Lived Assets |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Kaplan international |
|
$ |
23,258 |
|
|
$ |
23,936 |
|
|
(3 |
) |
|
$ |
87,530 |
|
|
$ |
72,066 |
|
|
21 |
|
Higher education |
|
|
5,599 |
|
|
|
7,396 |
|
|
(24 |
) |
|
|
38,942 |
|
|
|
24,819 |
|
|
57 |
|
Supplemental education |
|
|
5,480 |
|
|
|
3,398 |
|
|
61 |
|
|
|
22,472 |
|
|
|
21,069 |
|
|
7 |
|
Kaplan corporate and other |
|
|
(9,817 |
) |
|
|
(5,368 |
) |
|
(83 |
) |
|
|
(29,891 |
) |
|
|
(18,806 |
) |
|
(59 |
) |
Intersegment elimination |
|
|
(121 |
) |
|
|
(211 |
) |
|
— |
|
|
|
(29 |
) |
|
|
(45 |
) |
|
— |
|
|
|
$ |
24,399 |
|
|
$ |
29,151 |
|
|
(16 |
) |
|
$ |
119,024 |
|
|
$ |
99,103 |
|
|
20 |
|
Depreciation |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Kaplan international |
|
$ |
7,669 |
|
|
$ |
6,012 |
|
|
28 |
|
|
$ |
28,501 |
|
|
$ |
23,270 |
|
|
22 |
|
Higher education |
|
|
985 |
|
|
|
1,117 |
|
|
(12 |
) |
|
|
4,416 |
|
|
|
4,373 |
|
|
1 |
|
Supplemental education |
|
|
1,078 |
|
|
|
1,557 |
|
|
(31 |
) |
|
|
5,165 |
|
|
|
6,344 |
|
|
(19 |
) |
Kaplan corporate and other |
|
|
27 |
|
|
|
32 |
|
|
(16 |
) |
|
|
105 |
|
|
|
127 |
|
|
(17 |
) |
|
|
$ |
9,759 |
|
|
$ |
8,718 |
|
|
12 |
|
|
$ |
38,187 |
|
|
$ |
34,114 |
|
|
12 |
|
Pension Expense |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Kaplan international |
|
$ |
81 |
|
|
$ |
68 |
|
|
19 |
|
|
$ |
325 |
|
|
$ |
270 |
|
|
20 |
|
Higher education |
|
|
934 |
|
|
|
980 |
|
|
(5 |
) |
|
|
3,737 |
|
|
|
3,842 |
|
|
(3 |
) |
Supplemental education |
|
|
1,037 |
|
|
|
1,008 |
|
|
3 |
|
|
|
4,147 |
|
|
|
4,114 |
|
|
1 |
|
Kaplan corporate and other |
|
|
175 |
|
|
|
178 |
|
|
(2 |
) |
|
|
698 |
|
|
|
708 |
|
|
(1 |
) |
|
|
$ |
2,227 |
|
|
$ |
2,234 |
|
|
0 |
|
|
$ |
8,907 |
|
|
$ |
8,934 |
|
|
0 |
|
Adjusted Operating Cash Flow (non-GAAP)(1) |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Kaplan international |
|
$ |
31,008 |
|
|
$ |
30,016 |
|
|
3 |
|
|
$ |
116,356 |
|
|
$ |
95,606 |
|
|
22 |
|
Higher education |
|
|
7,518 |
|
|
|
9,493 |
|
|
(21 |
) |
|
|
47,095 |
|
|
|
33,034 |
|
|
43 |
|
Supplemental education |
|
|
7,595 |
|
|
|
5,963 |
|
|
27 |
|
|
|
31,784 |
|
|
|
31,527 |
|
|
1 |
|
Kaplan corporate and other |
|
|
(9,615 |
) |
|
|
(5,158 |
) |
|
(86 |
) |
|
|
(29,088 |
) |
|
|
(17,971 |
) |
|
(62 |
) |
Intersegment elimination |
|
|
(121 |
) |
|
|
(211 |
) |
|
— |
|
|
|
(29 |
) |
|
|
(45 |
) |
|
— |
|
|
|
$ |
36,385 |
|
|
$ |
40,103 |
|
|
(9 |
) |
|
$ |
166,118 |
|
|
$ |
142,151 |
|
|
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
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 |
||||||||||||||||||||||
|
2023 |
|
2022 |
||||||||||||||||||||
(in thousands, except per share amounts) |
Income
|
|
Income
|
|
Net
|
|
Income
|
|
Income
|
|
Net
|
||||||||||||
Amounts attributable to Graham Holdings Company Common Stockholders |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
As reported |
$ |
72,590 |
|
|
$ |
16,900 |
|
|
$ |
55,690 |
|
|
$ |
31,143 |
|
|
$ |
24,500 |
|
|
$ |
6,643 |
|
Attributable to noncontrolling interests |
|
|
|
|
|
(2,431 |
) |
|
|
|
|
|
|
(483 |
) |
||||||||
Attributable to Graham Holdings Company Stockholders |
|
|
|
|
|
53,259 |
|
|
|
|
|
|
|
6,160 |
|
||||||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net credit related to fair value changes in contingent consideration from prior acquisitions |
|
(2,267 |
) |
|
|
(330 |
) |
|
|
(1,937 |
) |
|
|
(1,317 |
) |
|
|
(10 |
) |
|
|
(1,307 |
) |
Goodwill and other long-lived asset impairment charges |
|
— |
|
|
|
(3,874 |
) |
|
|
3,874 |
|
|
|
128,990 |
|
|
|
11,953 |
|
|
|
117,037 |
|
Charges related to non-operating Separation Incentive Programs |
|
240 |
|
|
|
61 |
|
|
|
179 |
|
|
|
3,624 |
|
|
|
915 |
|
|
|
2,709 |
|
Net gains on marketable equity securities |
|
(24,639 |
) |
|
|
(5,491 |
) |
|
|
(19,148 |
) |
|
|
(33,289 |
) |
|
|
(8,266 |
) |
|
|
(25,023 |
) |
Net losses of affiliates whose operations are not managed by the Company |
|
6,391 |
|
|
|
1,637 |
|
|
|
4,754 |
|
|
|
9,026 |
|
|
|
2,386 |
|
|
|
6,640 |
|
Gain on sale of CyberVista |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(18,355 |
) |
|
|
(4,832 |
) |
|
|
(13,523 |
) |
Non-operating loss (gain), net, from write-ups, sales and impairments of cost and equity method investments |
|
500 |
|
|
|
111 |
|
|
|
389 |
|
|
|
(7,268 |
) |
|
|
(1,889 |
) |
|
|
(5,379 |
) |
Interest expense related to the fair value adjustment of the mandatorily redeemable noncontrolling interest |
|
8,701 |
|
|
|
377 |
|
|
|
8,324 |
|
|
|
3,690 |
|
|
|
537 |
|
|
|
3,153 |
|
Net Income, adjusted (non-GAAP) |
|
|
|
|
$ |
49,694 |
|
|
|
|
|
|
$ |
90,467 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Per share information attributable to Graham Holdings Company Common Stockholders |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Diluted income per common share, as reported |
|
|
|
|
$ |
11.72 |
|
|
|
|
|
|
$ |
1.28 |
|
||||||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net credit related to fair value changes in contingent consideration from prior acquisitions |
|
|
|
|
|
(0.43 |
) |
|
|
|
|
|
|
(0.27 |
) |
||||||||
Goodwill and other long-lived asset impairment charges |
|
|
|
|
|
0.85 |
|
|
|
|
|
|
|
24.32 |
|
||||||||
Charges related to non-operating Separation Incentive Programs |
|
|
|
|
|
0.04 |
|
|
|
|
|
|
|
0.56 |
|
||||||||
Net gains on marketable equity securities |
|
|
|
|
|
(4.21 |
) |
|
|
|
|
|
|
(5.20 |
) |
||||||||
Net losses of affiliates whose operations are not managed by the Company |
|
|
|
|
|
1.05 |
|
|
|
|
|
|
|
1.38 |
|
||||||||
Gain on sale of CyberVista |
|
|
|
|
|
— |
|
|
|
|
|
|
|
(2.81 |
) |
||||||||
Non-operating loss (gain), net, from write-ups, sales and impairments of cost and equity method investments |
|
|
|
|
|
0.09 |
|
|
|
|
|
|
|
(1.12 |
) |
||||||||
Interest expense related to the fair value adjustment of the mandatorily redeemable noncontrolling interest |
|
|
|
|
|
1.83 |
|
|
|
|
|
|
|
0.66 |
|
||||||||
Diluted income per common share, adjusted (non-GAAP) |
|
|
|
|
$ |
10.94 |
|
|
|
|
|
|
$ |
18.80 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
The adjusted diluted per share amounts may not compute due to rounding. |
|||||||||||||||||||||||
|
Twelve Months Ended December 31 |
||||||||||||||||||||||
|
2023 |
|
2022 |
||||||||||||||||||||
(in thousands, except per share amounts) |
Income
|
|
Income
|
|
Net
|
|
Income
|
|
Income
|
|
Net
|
||||||||||||
Amounts attributable to Graham Holdings Company Common Stockholders |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
As reported |
$ |
299,004 |
|
|
$ |
87,300 |
|
|
$ |
211,704 |
|
|
$ |
121,734 |
|
|
$ |
51,300 |
|
|
$ |
70,434 |
|
Attributable to noncontrolling interests |
|
|
|
|
|
(6,416 |
) |
|
|
|
|
|
|
(3,355 |
) |
||||||||
Attributable to Graham Holdings Company Stockholders |
|
|
|
|
$ |
205,288 |
|
|
|
|
|
|
$ |
67,079 |
|
||||||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net credit related to fair value changes in contingent consideration from prior acquisitions |
|
(6,955 |
) |
|
|
(473 |
) |
|
|
(6,482 |
) |
|
|
(6,113 |
) |
|
|
(34 |
) |
|
|
(6,079 |
) |
Goodwill and other long-lived asset impairment charges |
|
99,066 |
|
|
|
10,204 |
|
|
|
88,862 |
|
|
|
128,990 |
|
|
|
11,953 |
|
|
|
117,037 |
|
Charges related to non-operating Separation Incentive Programs |
|
9,886 |
|
|
|
2,542 |
|
|
|
7,344 |
|
|
|
3,624 |
|
|
|
915 |
|
|
|
2,709 |
|
Net (gains) losses on marketable equity securities |
|
(138,067 |
) |
|
|
(35,351 |
) |
|
|
(102,716 |
) |
|
|
139,589 |
|
|
|
36,747 |
|
|
|
102,842 |
|
Net losses of affiliates whose operations are not managed by the Company |
|
16,047 |
|
|
|
4,178 |
|
|
|
11,869 |
|
|
|
11,832 |
|
|
|
3,115 |
|
|
|
8,717 |
|
Gain on sale of Pinna and CyberVista |
|
(10,033 |
) |
|
|
(2,641 |
) |
|
|
(7,392 |
) |
|
|
(18,355 |
) |
|
|
(4,832 |
) |
|
|
(13,523 |
) |
Non-operating gain, net, from write-ups, sales and impairments of cost and equity method investments |
|
(3,435 |
) |
|
|
(896 |
) |
|
|
(2,539 |
) |
|
|
(9,507 |
) |
|
|
(2,456 |
) |
|
|
(7,051 |
) |
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 |
|
10,122 |
|
|
|
529 |
|
|
|
9,593 |
|
|
|
16,489 |
|
|
|
1,068 |
|
|
|
15,421 |
|
Net Income, adjusted (non-GAAP) |
|
|
|
|
$ |
200,498 |
|
|
|
|
|
|
$ |
287,152 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Per share information attributable to Graham Holdings Company Common Stockholders |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Diluted income per common share, as reported |
|
|
|
|
$ |
43.82 |
|
|
|
|
|
|
$ |
13.79 |
|
||||||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net credit related to fair value changes in contingent consideration from prior acquisitions |
|
|
|
|
|
(1.38 |
) |
|
|
|
|
|
|
(1.25 |
) |
||||||||
Goodwill and other long-lived asset impairment charges |
|
|
|
|
|
18.97 |
|
|
|
|
|
|
|
24.06 |
|
||||||||
Charges related to non-operating Separation Incentive Programs |
|
|
|
|
|
1.57 |
|
|
|
|
|
|
|
0.56 |
|
||||||||
Net (gains) losses on marketable equity securities |
|
|
|
|
|
(21.93 |
) |
|
|
|
|
|
|
21.14 |
|
||||||||
Net losses of affiliates whose operations are not managed by the Company |
|
|
|
|
|
2.53 |
|
|
|
|
|
|
|
1.79 |
|
||||||||
Gain on sale of Pinna and CyberVista |
|
|
|
|
|
(1.59 |
) |
|
|
|
|
|
|
(2.78 |
) |
||||||||
Non-operating gain, net, from write-ups, sales and impairments of cost and equity method investments |
|
|
|
|
|
(0.54 |
) |
|
|
|
|
|
|
(1.45 |
) |
||||||||
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 |
|
|
|
|
|
2.05 |
|
|
|
|
|
|
|
3.17 |
|
||||||||
Diluted income per common share, adjusted (non-GAAP) |
|
|
|
|
$ |
42.78 |
|
|
|
|
|
|
$ |
59.03 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
The adjusted diluted per share amounts may not compute due to rounding. |
|||||||||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240222861262/en/
Wallace R. Cooney
(703) 345-6470
Source: Graham Holdings Company
FAQ
What was Graham Holdings Company's revenue for 2023?
What was the operating income for Graham Holdings Company in 2023?
How did adjusted operating cash flow change for Graham Holdings Company in 2023?
What was the revenue change in television broadcasting for Q4 2023?
How did manufacturing revenues change in Q4 2023 for Graham Holdings Company?
What was the net interest expense for Graham Holdings Company in Q4 2023?
