Graham Holdings Company Reports Third Quarter Earnings
Graham Holdings Company (NYSE: GHC) reported strong Q3 2024 financial results with revenue increasing 9% to $1,207.2 million from $1,111.5 million in Q3 2023. The company posted operating income of $81.6 million, compared to a loss of $57.1 million in Q3 2023. Net income reached $72.5 million ($16.42 per share). Growth was driven by improvements in education, television broadcasting, healthcare, and automotive sectors. Adjusted operating cash flow increased to $126.1 million from $83.7 million year-over-year. The company maintains a strong financial position with $1,114.0 million in cash and investments.
Graham Holdings Company (NYSE: GHC) ha riportato risultati finanziari solidi nel terzo trimestre del 2024, con un aumento dei ricavi del 9%, arrivati a $1.207,2 milioni rispetto a $1.111,5 milioni nel terzo trimestre del 2023. L'azienda ha registrato un reddito operativo di $81,6 milioni, rispetto a una perdita di $57,1 milioni nel terzo trimestre del 2023. L'utile netto ha raggiunto $72,5 milioni (16,42$ per azione). La crescita è stata sostenuta dai miglioramenti nei settori dell'educazione, della trasmissione televisiva, della sanità e dell'automotive. Il flusso di cassa operativo rettificato è aumentato a $126,1 milioni rispetto a $83,7 milioni anno su anno. L'azienda mantiene una posizione finanziaria solida con $1.114,0 milioni in contante e investimenti.
Graham Holdings Company (NYSE: GHC) reportó resultados financieros sólidos en el tercer trimestre de 2024, con un aumento de ingresos del 9%, alcanzando $1,207.2 millones en comparación con $1,111.5 millones en el tercer trimestre de 2023. La empresa registró un ingreso operativo de $81.6 millones, en comparación con una pérdida de $57.1 millones en el tercer trimestre de 2023. El ingreso neto alcanzó $72.5 millones ($16.42 por acción). El crecimiento fue impulsado por mejoras en los sectores de educación, radiodifusión televisiva, salud y automotriz. El flujo de efectivo operativo ajustado aumentó a $126.1 millones desde $83.7 millones año tras año. La empresa mantiene una sólida posición financiera con $1,114.0 millones en efectivo e inversiones.
그레이엄홀딩스 컴퍼니 (NYSE: GHC)는 2024년 3분기에 9% 증가한 $1,207.2 백만의 수익을 보고하며 강력한 재무 실적을 기록했습니다. 이는 2023년 3분기 $1,111.5 백만에서 증가한 수치입니다. 회사는 $81.6 백만의 운영 수입을 기록했으며, 이는 2023년 3분기의 $57.1 백만의 손실과 비교됩니다. 순이익은 $72.5 백만 ($16.42 주당)에 도달했습니다. 성장은 교육, 텔레비전 방송, 의료 및 자동차 분야의 개선에 의해 주도되었습니다. 조정된 운영 현금 흐름은 작년 대비 $126.1 백만으로 증가했습니다 (이전 $83.7 백만). 회사는 $1,114.0 백만의 현금 및 투자를 보유하며 강력한 재무 상태를 유지하고 있습니다.
Graham Holdings Company (NYSE: GHC) a rapporté de solides résultats financiers pour le troisième trimestre de 2024, avec une augmentation de 9 % des revenus, atteignant $1.207,2 millions contre $1.111,5 millions au troisième trimestre de 2023. L'entreprise a affiché un revenu opérationnel de $81,6 millions, contre une perte de $57,1 millions au troisième trimestre de 2023. Le bénéfice net a atteint $72,5 millions (16,42 $ par action). La croissance a été soutenue par des améliorations dans les secteurs de l'éducation, de la diffusion télévisée, des soins de santé et de l'automobile. Le flux de trésorerie opérationnel ajusté a augmenté à $126,1 millions contre $83,7 millions d'une année sur l'autre. L'entreprise maintient une solide position financière avec $1.114,0 millions en espèces et investissements.
Graham Holdings Company (NYSE: GHC) hat im dritten Quartal 2024 starke finanzielle Ergebnisse gemeldet, mit einem Umsatzanstieg von 9% auf $1.207,2 Millionen, verglichen mit $1.111,5 Millionen im dritten Quartal 2023. Das Unternehmen verbuchte einen operativen Gewinn von $81,6 Millionen, gegenüber einem Verlust von $57,1 Millionen im dritten Quartal 2023. Der Nettogewinn erreichte $72,5 Millionen (16,42$ pro Aktie). Das Wachstum wurde durch Verbesserungen in den Bereichen Bildung, Fernsehübertragung, Gesundheitswesen und Automobilsektor unterstützt. Der bereinigte operative Cashflow stieg im Jahresvergleich auf $126,1 Millionen, nach $83,7 Millionen. Das Unternehmen hält eine starke Finanzlage mit $1.114,0 Millionen an Bargeld und Investitionen.
- Revenue increased 9% YoY to $1,207.2 million in Q3 2024
- Operating income improved to $81.6 million from -$57.1 million loss YoY
- Adjusted operating cash flow grew to $126.1 million from $83.7 million YoY
- Net gains on marketable equity securities increased to $30.5 million from $16.8 million YoY
- Strong liquidity position with $1,114.0 million in cash and investments
- Declines reported in manufacturing and other business segments
- $765.2 million in outstanding borrowings at 6.2% interest rate
- $66.9 million drawn on revolving credit facility
Insights
Graham Holdings delivered strong Q3 2024 results with
Notable highlights include improved adjusted operating cash flow of
The diversified revenue streams across education, media, healthcare and automotive sectors demonstrate GHC's resilient business model. The
The company's strong liquidity position and active share buyback program signal management's confidence in business fundamentals. The improved operating performance across major segments, combined with the upcoming settlement gain, positions GHC well for sustained growth.
Division Operating Results
Revenue for the third quarter of 2024 was
Revenue for the first nine months of 2024 was
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
Overall, the Company recognized
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
Overall Company Results
The Company reported net income attributable to common shares of
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
Subsequent Event
In October 2024, the Company purchased an irrevocable group annuity contract from an insurance company for
* * * * * * * * * * * *
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 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 September 30 |
||||||||||||||||||||||
|
2024 |
|
2023 |
||||||||||||||||||||
(in thousands, except per share amounts) |
Income
|
|
Income
|
|
Net (Loss) Income |
|
(Loss)
|
|
Income
|
|
Net
|
||||||||||||
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
|
|
Income
|
|
Net
|
|
Income
|
|
Income
|
|
Net
|
||||||||||||
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. |
|||||||||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20241030647370/en/
Wallace R. Cooney
(703) 345-6470
Source: Graham Holdings Company
FAQ
What was Graham Holdings (GHC) revenue in Q3 2024?
What was GHC's earnings per share in Q3 2024?
How much cash and investments does Graham Holdings (GHC) have as of Q3 2024?
Which business segments showed growth for GHC in Q3 2024?
