[October 31, 2014] |
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Graham Holdings Company Reports Third Quarter Earnings
WASHINGTON --(Business Wire)--
Graham Holdings Company (NYSE: GHC) today reported income from
continuing operations attributable to common shares of $83.3 million
($14.32 per share) for the third quarter of 2014, compared to $54.1
million ($7.28 per share) for the third quarter of 2013. Net income
attributable to common shares was $76.4 million ($13.12 per share) for
the third quarter ended September 30, 2014, compared to $30.1 million
($4.05 per share) for the third quarter of last year. Net income
includes $7.0 million ($1.20 per share) and $24.0 million ($3.23 per
share) in losses from discontinued operations for the third quarter of
2014 and 2013, respectively. (Refer to "Discontinued Operations"
discussion below.)
In connection with the Berkshire exchange transaction that closed on
June 30, 2014, the Company acquired 1,620,190 shares of its Class B
common stock, resulting in 22% and 7% fewer diluted shares outstanding,
respectively, in the third quarter of and first nine months of 2014
versus the same periods in 2013. The reduction in diluted shares
outstanding has resulted in increased diluted earnings per share amounts
in 2014, compared with 2013.
The results for the third quarter of 2014 and 2013 were affected by a
number of items as described in the following paragraphs. Excluding
these items, income from continuing operations attributable to common
shares was $50.6 million ($8.69 per share) for the third quarter of
2014, compared to $52.1 million ($7.01 per share) for the third quarter
of 2013. (Refer to the Non-GAAP Financial Information schedule at the
end of this release for additional details.)
Items included in the Company's income from continuing operations for
the third quarter of 2014:
-
$13.6 million in restructuring charges at the education division and
early retirement program expense and related charges at the Corporate
office (after-tax impact of $8.7 million, or $1.50 per share);
-
$75.2 million gain from the sale of wireless licenses at the Cable
division (after-tax impact of $48.2 million, or $8.29 per share); and
-
$10.6 million in non-operating unrealized foreign currency losses
(after-tax impact of $6.8 million, or $1.16 per share).
Items included in the Company's income from continuing operations for
the third quarter of 2013:
-
$4.0 million in restructuring charges at the education division
(after-tax impact of $3.1 million, or $0.42 per share); and
-
$7.9 million in non-operating unrealized foreign currency gains
(after-tax impact of $5.0 million, or $0.69 per share).
Revenue for the third quarter of 2014 was $898.9 million, up 5% from
$856.1 million in the third quarter of 2013. The Company reported
operating income of $81.3 million in the third quarter of 2014, compared
to $78.9 million in the third quarter of 2013. Revenues increased at the
television broadcasting division and in other businesses, declined at
the cable division and were flat at the education division. Operating
results were up in the third quarter of 2014 due to improvements at the
television broadcasting and cable divisions, offset by declines at the
education division and in other businesses.
For the first nine months of 2014, the Company reported income from
continuing operations attributable to common shares of $588.6 million
($85.24 per share), compared to $121.9 million ($16.41 per share) for
the first nine months of 2013. Net income attributable to common shares
was $958.6 million ($138.79 per share) for the first nine months of
2014, compared to $79.5 million ($10.70 per share) for the same period
of 2013. Net income includes $369.9 million ($53.55 per share) in income
and $42.3 million ($5.71 per share) in losses from discontinued
operations for the first nine months of 2014 and 2013, respectively.
(Refer to "Discontinued Operations" discussion below.)
The results for the first nine months of 2014 and 2013 were affected by
a number of significant items as described in the following paragraphs.
Excluding these items, income from continuing operations attributable to
common shares was $153.6 million ($22.26 per share) for the first nine
months of 2014, compared to $141.0 million ($19.04 per share) for the
first nine months of 2013. (Refer to the Non-GAAP Financial Information
schedule at the end of this release for additional details.) The per
share impact of these items for the first nine months of 2014 is
different than the per share impact of these items for the distinct
quarterly periods of 2014, as a result of the timing of the Berkshire
exchange transaction.
Items included in the Company's income from continuing operations for
the first nine months of 2014:
-
$28.6 million in early retirement program expense and related charges,
restructuring charges and software asset write-offs at the education
division and the corporate office (after-tax impact of $18.3 million,
or $2.65 per share);
-
$90.9 million gain from the Classified Ventures' sale of
apartments.com (after-tax impact of $58.2 million, or $8.43 per share);
-
$266.7 million gain from the Berkshire exchange transaction (after-tax
impact of $266.7 million, or $38.61 per share);
-
$127.7 million gain on the sale of the corporate headquarters building
(after-tax impact of $81.8 million, or $11.85 per share);
-
$75.2 million gain from the sale of wireless licenses at the Cable
division (after-tax impact of $48.2 million, or $6.98 per share); and
-
$2.6 million in non-operating unrealized foreign currency losses
(after-tax impact of $1.7 million, or $0.24 per share).
Items included in the Company's income from continuing operations for
the first nine months of 2013:
-
$18.2 million in restructuring charges at the education division
(after-tax impact of $13.2 million, or $1.80 per share); and
-
$9.4 million in non-operating unrealized foreign currency losses
(after-tax impact of $6.0 million, or $0.83 per share).
Revenue for the first nine months of 2014 was $2,609.8 million, up 3%
from $2,540.7 million in the first nine months of 2013. Revenues
increased at the television broadcasting division and in other
businesses, while revenues were down slightly at the cable division and
were flat at the education division. The Company reported operating
income of $261.7 million for the first nine months of 2014, compared to
$221.7 million for the first nine months of 2013. Operating results
improved at the television broadcasting and cable divisions, offset by a
decline at the education division and in other businesses.
On June 30, 2014, the Company and Berkshire Hathaway Inc. completed a
transaction in which Berkshire acquired a wholly-owned subsidiary of the
Company that included, among other things, WPLG, a Miami-based
television station, 2,107 Class A Berkshire shares and 1,278 Class B
Berkshire shares owned by Graham Holdings and $327.7 million in cash, in
exchange for 1,620,190 shares of Graham Holdings Class B common stock
owned by Berkshire Hathaway (Berkshire exchange transaction). As a
result, income from continuing operations for the first nine months of
2014 includes a $266.7 million gain from the exchange of the Berkshire
Hathaway shares, and income from discontinued operations for the first
nine months of 2014 includes a $375.0 million gain from the WPLG
exchange.
Division Results
Education
Education division revenue totaled $543.9 million for the third quarter
of 2014, compared with revenue of $543.6 million for the third quarter
of 2013. Kaplan reported third quarter 2014 operating income of $12.6
million, compared to $17.5 million in the third quarter of 2013.
Restructuring costs totaled $3.3 million and $4.0 million for the third
quarter of 2014 and 2013, respectively.
For the first nine months of 2014, education division revenue totaled
$1,609.0 million, compared with revenue of $1,613.1 million for the same
period of 2013. Kaplan reported operating income of $32.1 million for
the first nine months of 2014, compared to $36.6 million for the first
nine months of 2013. Restructuring costs and software asset write-offs
totaled $13.8 million and $18.2 million for the first nine months of
2014 and 2013, respectively.
In the third quarter of 2014, Kaplan completed the sale of three of its
schools in China that were previously included as part of Kaplan
International. An additional school in China is expected to be sold by
Kaplan in the fourth quarter of 2014. Kaplan's operating results exclude
these schools, which have been reclassified to discontinued operations
for all periods presented.
A summary of Kaplan's operating results for the third quarter and first
nine months of 2014 compared to 2013 is as follows:
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Three Months Ended
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Nine Months Ended
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September 30
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September 30
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(in thousands)
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2014
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2013
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% Change
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2014
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2013
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% Change
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Revenue
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Higher education
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$
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249,882
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$
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266,061
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(6
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)
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$
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755,597
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$
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811,013
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(7
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)
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Test preparation
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85,108
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77,431
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10
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234,010
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232,064
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1
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Kaplan international
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207,615
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198,452
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5
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615,507
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564,705
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9
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Kaplan corporate and other
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1,492
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2,223
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(33
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)
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4,891
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6,496
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(25
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)
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Intersegment elimination
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(179
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)
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(568
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)
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-
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(969
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)
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(1,162
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)
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-
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$
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543,918
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$
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543,599
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0
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$
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1,609,036
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$
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1,613,116
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0
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Operating Income (Loss)
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Higher education
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$
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5,391
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$
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14,719
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(63
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)
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$
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39,487
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$
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42,354
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(7
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)
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Test preparation
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6,980
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3,820
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83
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(3,552
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)
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7,306
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-
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Kaplan international
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13,853
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12,124
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14
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40,609
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23,701
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71
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Kaplan corporate and other
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(11,724
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(11,393
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(3
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(38,959
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(31,075
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(25
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Amortization of intangible assets
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(1,927
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)
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(1,918
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-
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(5,649
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)
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(6,081
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)
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7
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Intersegment elimination
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(22
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)
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156
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-
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114
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|
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381
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-
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|
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$
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12,551
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$
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17,508
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(28
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)
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$
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32,050
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$
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36,586
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(12
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Kaplan Higher Education (KHE) includes Kaplan's domestic postsecondary
education businesses, made up of fixed-facility colleges and online
postsecondary and career programs. KHE also includes the domestic
professional training and other continuing education businesses.
In 2012, KHE began implementing plans to close or merge 13 ground
campuses, consolidate other facilities and reduce its workforce. The
last two of these campus closures were completed in the second quarter
of 2014. In April 2014, KHE announced plans to close two additional
ground campuses, and in July 2014, KHE announced plans to close another
three campuses; KHE will teach out the current students and the campus
closures will be completed by the end of 2015. In July 2014, KHE also
announced plans to further reduce its workforce.
In connection with these and other plans, KHE incurred $2.0 million and
$4.5 million in restructuring costs for the third quarter and first nine
months of 2014, respectively, and $2.5 million and $14.1 million in
restructuring costs in the third quarter and first nine months of 2013,
respectively. For the third quarter of 2014, these costs included
severance ($1.0 million), accelerated depreciation ($0.9 million) and
other items ($0.1 million). For the first nine months of 2014, these
costs included severance ($3.0 million), accelerated depreciation ($1.2
million), lease obligation losses ($0.1 million) and other items ($0.2
million). For the third quarter of 2013, these costs included
accelerated depreciation ($0.8 million), severance ($1.6 million) and
lease obligation losses ($0.1 million). For the first nine months of
2013, these costs included accelerated depreciation ($5.8 million),
severance ($3.0 million), lease obligation losses ($4.4 million) and
other items ($0.9 million).
In the third quarter and first nine months of 2014, KHE revenue declined
6% and 7%, respectively, due largely to declines in average enrollments
at Kaplan University and KHE campuses that reflect weaker market demand
over the past year, lower average tuition and the impact of closed
campuses. The weaker market demand was most pronounced at KHE's ground
campuses in non-degree vocational programs. KHE operating income
declined in the third quarter and first nine months of 2014 due largely
to revenue declines. Expense reductions associated with lower
enrollments and recent restructuring efforts were partially offset by
increased marketing spending at Kaplan University.
New student enrollments at KHE declined 11% in the third quarter of 2014
due to lower demand across KHE and the impact of closed campuses. New
student enrollments decreased 1% for the first nine months of 2014 due
to declines at KHE campuses.
Total students at September 30, 2014, were down 5% compared to
September 30, 2013, and increased 1% compared to June 30, 2014.
Excluding campuses closed or planned for closure, total students at
September 30, 2014, were down 3% compared to September 30, 2013 but up
3% compared to June 30, 2014. A summary of student enrollments is as
follows:
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Excluding Campuses Closing
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As of
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As of
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September 30,
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June 30,
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September 30,
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September 30,
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June 30,
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September 30,
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2014
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2014
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2013
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2014
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2014
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2013
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Kaplan University
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46,342
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44,515
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46,340
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46,342
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44,515
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46,340
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Other Campuses
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15,570
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16,508
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18,818
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15,139
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15,221
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17,036
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61,912
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61,023
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65,158
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61,481
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59,736
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63,376
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Kaplan University and Other Campuses enrollments at September 30, 2014
and 2013, by degree and certificate programs, are as follows:
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As of September 30
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2014
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2013
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Certificate
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20.9
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%
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21.3
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%
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Associate's
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28.8
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%
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30.8
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%
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Bachelor's
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33.4
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%
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32.6
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%
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Master's
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16.9
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%
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15.3
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%
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100.0
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%
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100.0
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%
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Kaplan Test Preparation (KTP) includes Kaplan's standardized test
preparation programs. KTP revenue increased 10% and 1% for the third
quarter and first nine months of 2014, respectively. Excluding revenues
from acquired businesses, KTP revenue increased 6% in the third quarter
of 2014 and declined 1% for the first nine months of 2014. Enrollment
increased 5% and 3% for the third quarter and first nine months of 2014,
respectively, due to growth in health and bar review programs, offset by
declines in graduate and pre-college programs. KTP recorded a $7.7
million software asset write-off in the second quarter of 2014, as a
decision was made to consolidate certain learning management systems.
KTP operating results increased in the third quarter of 2014 due to
revenue growth, but declined in the first nine months of 2014 due to the
software asset write-off and an increase in program length for MCAT
courses that extends revenue recognition periods.
Kaplan International includes English-language programs, and
postsecondary education and professional training businesses largely
outside the United States. Kaplan International revenue increased 5% and
9% in the third quarter and first nine months of 2014, respectively, due
to enrollment growth in the pathways programs, English-language and
Singapore higher education programs. Kaplan International operating
income improved in the third quarter and first nine months of 2014 due
primarily to improved results from operations in Australia and
Singapore. In the third quarter and first nine months of 2013,
restructuring costs in Australia totaled $1.5 million and $4.1 million,
respectively, largely made up of severance costs.
Kaplan corporate represents unallocated expenses of Kaplan, Inc.'s
corporate office, other minor businesses and certain shared activities.
Corporate expense increased in the first nine months of 2014 due to
higher compensation expense and costs associated with new business
development activities.
Kaplan continues to evaluate its cost structure and is pursuing
additional cost savings opportunities, including eliminating excess
office capacity and possible additional school closings. This will
likely result in additional restructuring plans and related costs in
2014 and 2015.
Cable
Cable division revenue declined 3% in the third quarter of 2014 to
$195.7 million, from $202.4 million for the third quarter of 2013, due
to 3% fewer customers and 7% fewer Primary Service Units (PSUs). For the
first nine months of 2014, revenue of $600.4 million was down 1% from
$607.1 million in the prior year. Operating expenses in the third
quarter declined 4%, from $162.7 million to $155.6 million, due to fewer
customers and significantly reduced programming costs. Operating
expenses declined 3% in the first nine months of 2014 to $472.4 million.
Cable division operating income grew 1% in the third quarter of 2014 to
$40.1 million, from $39.7 million in the third quarter of 2013; for the
first nine months of 2014, operating income increased 6% to $128.0
million, from $121.0 million in the first nine months of 2013.
The cable division continues its focus on higher margin businesses,
namely high-speed data and business sales. High-speed data revenue
increased 5% in the third quarter of 2014 on a 4% customer gain and
business sales increased 19% on a 17% increase in commercial high-speed
data customers. Overall, business sales comprised 9.4% of total revenue
for the first nine months of 2014, compared with 7.8% of total revenue
for the first nine months of 2013. Due to rapidly rising programming
costs and shrinking margins, video sales now have less value and
emphasis (subscribers down 15% over the third quarter of last year) and
programming costs have been reduced significantly. Effective April 1,
2014, the cable division elected not to renew its contract for 15 Viacom
networks for a six-year term.
The cable division also continues its focus on higher lifetime value
customers who are less attracted by discounting, require less support
and churn less. As a result, operating income margins have increased to
20.5% in the third quarter from 19.6% last year.
A summary of PSUs and total customers is as follows:
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As of September 30
|
|
|
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|
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2014
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2013
|
Video
|
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|
|
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476,233
|
|
|
561,119
|
High-speed data
|
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|
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|
486,142
|
|
|
469,296
|
Telephony
|
|
|
|
|
164,917
|
|
|
182,643
|
Total Primary Service Units (PSUs)
|
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|
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1,127,292
|
|
|
1,213,058
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Total Customers
|
|
|
|
|
694,236
|
|
|
712,424
|
|
|
|
|
|
|
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In July 2014, the cable division sold wireless spectrum licenses for $99
million; a pre-tax gain of $75.2 million was reported in the third
quarter of 2014 in connection with these sales. The licenses had been
purchased in the 2006 AWS Auction.
Television Broadcasting
Revenue at the television broadcasting division increased 19% to $87.4
million in the third quarter of 2014, from $73.5 million in the same
period of 2013; operating income for the third quarter of 2014 was up
37% to $45.0 million, from $32.8 million in the same period of 2013. The
increase in revenue and operating income is due to a $9.5 million
increase in political advertising revenue and $4.7 million in increased
retransmission revenues.
For the first nine months of 2014, revenue increased 17% to $261.4
million, from $222.6 million in the same period of 2013; operating
income for the first nine months of 2014 increased 32% to $133.5
million, from $101.2 million in the same period of 2013. The increase in
revenue and operating income is due to a $16.4 million increase in
political advertising revenue, $9.5 million in incremental winter
Olympics-related advertising revenue at the Company's NBC affiliates and
$14.0 million in increased retransmission revenues.
As a result of the Berkshire exchange transaction discussed above, the
television broadcasting operating results exclude WPLG, the Company's
Miami-based television station, which has been reclassified to
discontinued operations for all periods presented.
Other Businesses
Other businesses includes the operating results of The Slate Group and
Foreign Policy Group, which publish online and print magazines and
websites; SocialCode, a marketing solutions provider helping companies
with marketing on social-media platforms; Celtic Healthcare, a provider
of home health and hospice services; Forney, a global supplier of
products and systems that control and monitor combustion processes in
electric utility and industrial applications, acquired by the Company in
August 2013; and Trove, a digital innovation team that builds products
and technologies in the news space.
In April 2014, Celtic Healthcare acquired the assets of VNA-TIP
Healthcare of Bridgeton, MO. This acquisition has expanded Celtic's home
health and hospice service areas from Pennsylvania and Maryland to the
Missouri and Illinois regions. The operating results of VNA-TIP are
included in Other Businesses from the date of acquisition in the second
quarter of 2014.
On May 30, 2014, the Company acquired Joyce/Dayton Corp., a Dayton,
OH-based manufacturer of screw jacks and other linear motion systems.
The operating results of Joyce/Dayton are included in Other Businesses
from the date of acquisition in the second quarter of 2014.
On July 3, 2014, the Company acquired a majority interest in Residential
Healthcare Group, Inc. (Residential), the parent company of Residential
Home Health and Residential Hospice, leading providers of skilled home
health care and hospice services in Michigan and Illinois. The operating
results of Residential are included in Other Businesses from the date of
acquisition in the third quarter of 2014.
The increase in revenues for the third quarter and first nine months of
2014 is primarily due to newly acquired businesses in 2014 and 2013. The
operating results for the third quarter and first nine months of 2014
were adversely impacted by increased long-term compensation expense at
SocialCode.
Corporate Office
Corporate office includes the expenses of the Company's corporate
office, the pension credit for the Company's traditional defined benefit
plan and certain continuing obligations related to prior business
dispositions. In the first quarter of 2014, the corporate office
implemented a Separation Incentive Program that resulted in early
retirement program expense of $4.5 million, which is being funded from
the assets of the Company's pension plan. In the third quarter of 2014,
the acceptance period for the Voluntary Retirement Incentive Program
(VRIP) ended. As a result, the Company recorded $10.3 million in early
retirement program expense and other related charges in the third
quarter of 2014, a portion of which will be funded from the assets of
the Company's pension plan. Excluding early retirement program expense,
the total pension credit for the Company's traditional defined benefit
plan was $68.0 million and $28.4 million in the first nine months of
2014 and 2013, respectively.
Excluding the pension credit, early retirement program expense and other
related charges, corporate office expenses increased in the first nine
months of 2014 due primarily to higher compensation costs, expenses
related to certain acquisitions and the Berkshire exchange transaction,
and incremental costs associated with the corporate office headquarters
move to Arlington, Virginia.
Equity in Earnings (Losses) of Affiliates
At September 30, 2014, the Company held a 16.5% interest in Classified
Ventures, LLC (CV) and interests in several other affiliates. On October
1, 2014, the Company and the remaining partners in CV completed the sale
of their entire stakes in CV. Total proceeds to the Company, net of
transaction costs, were $408.5 million, of which $16.5 million will be
held in escrow until October 1, 2015. The Company estimates a pre-tax
gain of $393 million in connection with the sale that will be recorded
in the fourth quarter of 2014.
The Company's equity in earnings of affiliates, net, was $4.6 million
for the third quarter of 2014, compared to $5.9 million for the third
quarter of 2013. For the first nine months of 2014, the Company's equity
in earnings of affiliates, net, totaled $100.2 million, compared to
$13.2 million for the same period of 2013.
The 2014 results include a pre-tax gain of $90.9 million from Classified
Ventures' sale of apartments.com in the second quarter of 2014.
Other Non-Operating Income (Expense)
The Company recorded total other non-operating income, net, of $64.5
million for the third quarter of 2014, compared to income of $8.1
million for the third quarter of 2013. The third quarter 2014
non-operating income, net, included a pre-tax gain of $75.2 million in
connection with the Cable division's sale of wireless licenses. Third
quarter 2014 non-operating income, net, also included $10.6 million in
unrealized foreign currency losses and other items. The third quarter
2013 non-operating expense, net, included $7.9 million in unrealized
foreign currency gains and other items.
The Company recorded non-operating income, net, of $465.9 million for
the first nine months of 2014, compared to other non-operating expense,
net, of $8.8 million for the same period of the prior year. The 2014
amounts included the pre-tax gain of $266.7 million in connection with
the Company's exchange of Berkshire shares, a pre-tax gain of $127.7
million on the sale of the headquarters building, $75.2 million on the
sale of wireless licenses and $2.6 million in unrealized foreign
currency losses and other items. The 2013 non-operating income, net,
included $9.4 million in unrealized foreign currency losses and other
items.
Net Interest Expense
The Company incurred net interest expense of $8.8 million and $24.9
million for the third quarter and first nine months of 2014,
respectively, compared to $8.6 million and $25.6 million for the same
periods of 2013. At September 30, 2014, the Company had $448.8 million
in borrowings outstanding at an average interest rate of 7.0%.
Provision for Income Taxes
The effective tax rate for income from continuing operations for the
first nine months of 2014 was 26.7%, compared to 38.6% for the first
nine months of 2013. The lower effective tax rate in 2014 largely
relates to the Berkshire exchange transaction. The pre-tax gain of
$266.7 million related to the disposition of the Berkshire shares was
not subject to income tax as the exchange transaction qualifies as a
tax-free distribution.
Discontinued Operations
On June 30, 2014, the Company and Berkshire Hathaway Inc. completed the
Berkshire exchange transaction discussed above. A gain of $375.0 million
was recorded in discontinued operations in connection with the
disposition of WPLG, a Miami-based television station. This gain is not
subject to income tax. Also as a result of the exchange transaction,
income from continuing operations excludes WPLG, which has been
reclassified to discontinued operations, net of tax, for all periods
presented.
In the third quarter of 2014, Kaplan completed the sale of three of its
schools in China that were previously included as part of Kaplan
International. An additional school in China is expected to be sold by
Kaplan in the fourth quarter of 2014. Income from continuing operations
excludes these schools, which have been reclassified to discontinued
operations, net of tax, for all periods presented.
Earnings (Loss) Per Share
The calculation of diluted earnings per share for the third quarter and
first nine months of 2014 was based on 5,756,682 and 6,823,248 weighted
average shares outstanding, respectively, compared to 7,336,752 and
7,315,971 for the third quarter and first nine months of 2013. At
September 30, 2014, there were 5,793,160 shares outstanding and the
Company had remaining authorization from the Board of Directors to
purchase up to 159,219 shares of Class B common stock. The earnings per
share computations for the third quarter and first nine months of 2014
were favorably impacted by the 1,620,190 common shares repurchased as
part of the Berkshire exchange transaction.
Forward-Looking Statements
This report contains certain forward-looking statements that are based
largely on the Company's current expectations. Forward-looking
statements are subject to certain risks and uncertainties that could
cause actual results and achievements to differ materially from those
expressed in the forward-looking statements. For more information about
these forward-looking statements and related risks, please refer to the
section titled "Forward-Looking Statements" in Part I of the Company's
Annual Report on Form 10-K.
|
GRAHAM HOLDINGS COMPANY
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
September 30
|
|
%
|
(in thousands, except per share amounts)
|
|
2014
|
|
2013
|
|
Change
|
Operating revenues
|
|
$
|
898,871
|
|
|
$
|
856,101
|
|
|
5
|
|
Operating expenses
|
|
|
757,111
|
|
|
|
720,072
|
|
|
5
|
|
Depreciation of property, plant and equipment
|
|
|
53,074
|
|
|
|
54,672
|
|
|
(3
|
)
|
Amortization of intangible assets
|
|
|
7,405
|
|
|
|
2,468
|
|
|
-
|
|
Operating income
|
|
|
81,281
|
|
|
|
78,889
|
|
|
3
|
|
Equity in earnings of affiliates, net
|
|
|
4,613
|
|
|
|
5,892
|
|
|
(22
|
)
|
Interest income
|
|
|
529
|
|
|
|
642
|
|
|
(18
|
)
|
Interest expense
|
|
|
(9,330
|
)
|
|
|
(9,221
|
)
|
|
1
|
|
Other income, net
|
|
|
64,526
|
|
|
|
8,110
|
|
|
-
|
|
Income from continuing operations before income taxes
|
|
|
141,619
|
|
|
|
84,312
|
|
|
68
|
|
Provision for income taxes
|
|
|
58,200
|
|
|
|
29,900
|
|
|
95
|
|
Income from continuing operations
|
|
|
83,419
|
|
|
|
54,412
|
|
|
53
|
|
Loss from discontinued operations, net of tax
|
|
|
(6,980
|
)
|
|
|
(23,988
|
)
|
|
(71
|
)
|
Net income
|
|
|
76,439
|
|
|
|
30,424
|
|
|
-
|
|
Net loss (income) attributable to noncontrolling interests
|
|
|
121
|
|
|
|
(75
|
)
|
|
-
|
|
Net income attributable to Graham Holdings Company
|
|
|
76,560
|
|
|
|
30,349
|
|
|
-
|
|
Redeemable preferred stock dividends
|
|
|
(209
|
)
|
|
|
(205
|
)
|
|
2
|
|
Net Income Attributable to Graham Holdings Company Common
Stockholders
|
|
$
|
76,351
|
|
|
$
|
30,144
|
|
|
-
|
|
Amounts Attributable to Graham Holdings Company Common
Stockholders
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
83,331
|
|
|
$
|
54,132
|
|
|
54
|
|
Loss from discontinued operations, net of tax
|
|
|
(6,980
|
)
|
|
|
(23,988
|
)
|
|
(71
|
)
|
Net income
|
|
$
|
76,351
|
|
|
$
|
30,144
|
|
|
-
|
|
Per Share Information Attributable to Graham Holdings Company
Common Stockholders
|
|
|
|
|
|
|
Basic income per common share from continuing operations
|
|
$
|
14.38
|
|
|
$
|
7.29
|
|
|
97
|
|
Basic loss per common share from discontinued operations
|
|
|
(1.20
|
)
|
|
|
(3.22
|
)
|
|
(63
|
)
|
Basic net income per common share
|
|
$
|
13.18
|
|
|
$
|
4.07
|
|
|
-
|
|
Basic average number of common shares outstanding
|
|
|
5,671
|
|
|
|
7,231
|
|
|
|
Diluted income per common share from continuing operations
|
|
$
|
14.32
|
|
|
$
|
7.28
|
|
|
97
|
|
Diluted loss per common share from discontinued operations
|
|
|
(1.20
|
)
|
|
|
(3.23
|
)
|
|
(63
|
)
|
Diluted net income per common share
|
|
$
|
13.12
|
|
|
$
|
4.05
|
|
|
-
|
|
Diluted average number of common shares outstanding
|
|
|
5,757
|
|
|
|
7,337
|
|
|
|
|
|
|
|
|
|
|
|
GRAHAM HOLDINGS COMPANY
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
|
|
|
Nine Months Ended
|
|
|
|
|
September 30
|
|
%
|
(in thousands, except per share amounts)
|
|
2014
|
|
2013
|
|
Change
|
Operating revenues
|
|
$
|
2,609,823
|
|
|
$
|
2,540,669
|
|
|
3
|
|
Operating expenses
|
|
|
2,176,716
|
|
|
|
2,139,713
|
|
|
2
|
|
Depreciation of property, plant and equipment
|
|
|
158,280
|
|
|
|
170,431
|
|
|
(7
|
)
|
Amortization of intangible assets
|
|
|
13,117
|
|
|
|
8,780
|
|
|
49
|
|
Operating income
|
|
|
261,710
|
|
|
|
221,745
|
|
|
18
|
|
Equity in earnings of affiliates, net
|
|
|
100,168
|
|
|
|
13,178
|
|
|
-
|
|
Interest income
|
|
|
1,769
|
|
|
|
1,674
|
|
|
6
|
|
Interest expense
|
|
|
(26,707
|
)
|
|
|
(27,229
|
)
|
|
(2
|
)
|
Other income (expense), net
|
|
|
465,913
|
|
|
|
(8,831
|
)
|
|
-
|
|
Income from continuing operations before income taxes
|
|
|
802,853
|
|
|
|
200,537
|
|
|
-
|
|
Provision for income taxes
|
|
|
214,200
|
|
|
|
77,400
|
|
|
-
|
|
Income from continuing operations
|
|
|
588,653
|
|
|
|
123,137
|
|
|
-
|
|
Income (loss) from discontinued operations, net of tax
|
|
|
369,941
|
|
|
|
(42,320
|
)
|
|
-
|
|
Net income
|
|
|
958,594
|
|
|
|
80,817
|
|
|
-
|
|
Net loss (income) attributable to noncontrolling interests
|
|
|
839
|
|
|
|
(425
|
)
|
|
-
|
|
Net income attributable to Graham Holdings Company
|
|
|
959,433
|
|
|
|
80,392
|
|
|
-
|
|
Redeemable preferred stock dividends
|
|
|
(847
|
)
|
|
|
(855
|
)
|
|
(1
|
)
|
Net Income Attributable to Graham Holdings Company Common
Stockholders
|
|
$
|
958,586
|
|
|
$
|
79,537
|
|
|
-
|
|
Amounts Attributable to Graham Holdings Company Common
Stockholders
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
588,645
|
|
|
$
|
121,857
|
|
|
-
|
|
Income (loss) from discontinued operations, net of tax
|
|
|
369,941
|
|
|
|
(42,320
|
)
|
|
-
|
|
Net income
|
|
$
|
958,586
|
|
|
$
|
79,537
|
|
|
-
|
|
Per Share Information Attributable to Graham Holdings Company
Common Stockholders
|
|
|
|
|
|
|
Basic income per common share from continuing operations
|
|
$
|
85.55
|
|
|
$
|
16.42
|
|
|
-
|
|
Basic income (loss) per common share from discontinued operations
|
|
|
53.75
|
|
|
|
(5.70
|
)
|
|
-
|
|
Basic net income per common share
|
|
$
|
139.30
|
|
|
$
|
10.72
|
|
|
-
|
|
Basic average number of common shares outstanding
|
|
|
6,737
|
|
|
|
7,229
|
|
|
|
Diluted income per common share from continuing operations
|
|
$
|
85.24
|
|
|
$
|
16.41
|
|
|
-
|
|
Diluted income (loss) per common share from discontinued operations
|
|
|
53.55
|
|
|
|
(5.71
|
)
|
|
-
|
|
Diluted net income per common share
|
|
$
|
138.79
|
|
|
$
|
10.70
|
|
|
-
|
|
Diluted average number of common shares outstanding
|
|
|
6,823
|
|
|
|
7,316
|
|
|
|
|
|
|
|
|
|
|
|
GRAHAM HOLDINGS COMPANY
|
BUSINESS SEGMENT INFORMATION
|
(Unaudited)
|
|
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
|
|
September 30
|
|
%
|
|
September 30
|
|
%
|
(in thousands)
|
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
Operating Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Education
|
|
$
|
543,918
|
|
|
$
|
543,599
|
|
|
0
|
|
|
$
|
1,609,036
|
|
|
$
|
1,613,116
|
|
|
0
|
|
Cable
|
|
|
195,666
|
|
|
|
202,381
|
|
|
(3
|
)
|
|
|
600,416
|
|
|
|
607,069
|
|
|
(1
|
)
|
Television broadcasting
|
|
|
87,442
|
|
|
|
73,488
|
|
|
19
|
|
|
|
261,390
|
|
|
|
222,618
|
|
|
17
|
|
Other businesses
|
|
|
71,845
|
|
|
|
36,682
|
|
|
96
|
|
|
|
139,109
|
|
|
|
98,068
|
|
|
42
|
|
Corporate office
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
Intersegment elimination
|
|
|
-
|
|
|
|
(49
|
)
|
|
-
|
|
|
|
(128
|
)
|
|
|
(202
|
)
|
|
-
|
|
|
|
$
|
898,871
|
|
|
$
|
856,101
|
|
|
5
|
|
|
$
|
2,609,823
|
|
|
$
|
2,540,669
|
|
|
3
|
|
Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Education
|
|
$
|
531,367
|
|
|
$
|
526,091
|
|
|
1
|
|
|
$
|
1,576,986
|
|
|
$
|
1,576,530
|
|
|
0
|
|
Cable
|
|
|
155,594
|
|
|
|
162,666
|
|
|
(4
|
)
|
|
|
472,401
|
|
|
|
486,031
|
|
|
(3
|
)
|
Television broadcasting
|
|
|
42,463
|
|
|
|
40,641
|
|
|
4
|
|
|
|
127,938
|
|
|
|
121,425
|
|
|
5
|
|
Other businesses
|
|
|
81,137
|
|
|
|
41,728
|
|
|
94
|
|
|
|
166,143
|
|
|
|
117,624
|
|
|
41
|
|
Corporate office
|
|
|
7,029
|
|
|
|
6,135
|
|
|
15
|
|
|
|
4,773
|
|
|
|
17,516
|
|
|
(73
|
)
|
Intersegment elimination
|
|
|
-
|
|
|
|
(49
|
)
|
|
-
|
|
|
|
(128
|
)
|
|
|
(202
|
)
|
|
-
|
|
|
|
$
|
817,590
|
|
|
$
|
777,212
|
|
|
5
|
|
|
$
|
2,348,113
|
|
|
$
|
2,318,924
|
|
|
1
|
|
Operating Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
Education
|
|
$
|
12,551
|
|
|
$
|
17,508
|
|
|
(28
|
)
|
|
$
|
32,050
|
|
|
$
|
36,586
|
|
|
(12
|
)
|
Cable
|
|
|
40,072
|
|
|
|
39,715
|
|
|
1
|
|
|
|
128,015
|
|
|
|
121,038
|
|
|
6
|
|
Television broadcasting
|
|
|
44,979
|
|
|
|
32,847
|
|
|
37
|
|
|
|
133,452
|
|
|
|
101,193
|
|
|
32
|
|
Other businesses
|
|
|
(9,292
|
)
|
|
|
(5,046
|
)
|
|
(84
|
)
|
|
|
(27,034
|
)
|
|
|
(19,556
|
)
|
|
(38
|
)
|
Corporate office
|
|
|
(7,029
|
)
|
|
|
(6,135
|
)
|
|
(15
|
)
|
|
|
(4,773
|
)
|
|
|
(17,516
|
)
|
|
73
|
|
|
|
$
|
81,281
|
|
|
$
|
78,889
|
|
|
3
|
|
|
$
|
261,710
|
|
|
$
|
221,745
|
|
|
18
|
|
Depreciation
|
|
|
|
|
|
|
|
|
|
|
|
|
Education
|
|
$
|
15,237
|
|
|
$
|
18,945
|
|
|
(20
|
)
|
|
$
|
47,024
|
|
|
$
|
61,518
|
|
|
(24
|
)
|
Cable
|
|
|
34,410
|
|
|
|
32,946
|
|
|
4
|
|
|
|
101,985
|
|
|
|
100,643
|
|
|
1
|
|
Television broadcasting
|
|
|
2,148
|
|
|
|
2,181
|
|
|
(2
|
)
|
|
|
6,181
|
|
|
|
6,604
|
|
|
(6
|
)
|
Other businesses
|
|
|
1,201
|
|
|
|
555
|
|
|
-
|
|
|
|
2,501
|
|
|
|
1,561
|
|
|
60
|
|
Corporate office
|
|
|
78
|
|
|
|
45
|
|
|
73
|
|
|
|
589
|
|
|
|
105
|
|
|
-
|
|
|
|
$
|
53,074
|
|
|
$
|
54,672
|
|
|
(3
|
)
|
|
$
|
158,280
|
|
|
$
|
170,431
|
|
|
(7
|
)
|
Amortization of Intangible Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Education
|
|
$
|
1,927
|
|
|
$
|
1,918
|
|
|
-
|
|
|
$
|
5,649
|
|
|
$
|
6,081
|
|
|
(7
|
)
|
Cable
|
|
|
51
|
|
|
|
61
|
|
|
(16
|
)
|
|
|
145
|
|
|
|
168
|
|
|
(14
|
)
|
Television broadcasting
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
Other businesses
|
|
|
5,427
|
|
|
|
489
|
|
|
-
|
|
|
|
7,323
|
|
|
|
2,531
|
|
|
-
|
|
Corporate office
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
$
|
7,405
|
|
|
$
|
2,468
|
|
|
-
|
|
|
$
|
13,117
|
|
|
$
|
8,780
|
|
|
49
|
|
Pension Expense (Credit)
|
|
|
|
|
|
|
|
|
|
|
|
|
Education
|
|
$
|
3,854
|
|
|
$
|
4,169
|
|
|
(8
|
)
|
|
$
|
11,563
|
|
|
$
|
12,506
|
|
|
(8
|
)
|
Cable
|
|
|
917
|
|
|
|
973
|
|
|
(6
|
)
|
|
|
2,669
|
|
|
|
2,768
|
|
|
(4
|
)
|
Television broadcasting
|
|
|
338
|
|
|
|
1,297
|
|
|
(74
|
)
|
|
|
1,016
|
|
|
|
3,891
|
|
|
(74
|
)
|
Other businesses
|
|
|
191
|
|
|
|
173
|
|
|
10
|
|
|
|
557
|
|
|
|
423
|
|
|
32
|
|
Corporate office
|
|
|
(18,620
|
)
|
|
|
(9,299
|
)
|
|
-
|
|
|
|
(59,231
|
)
|
|
|
(27,549
|
)
|
|
-
|
|
|
|
$
|
(13,320
|
)
|
|
$
|
(2,687
|
)
|
|
-
|
|
|
$
|
(43,426
|
)
|
|
$
|
(7,961
|
)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GRAHAM HOLDINGS COMPANY
|
EDUCATION DIVISION INFORMATION
|
(Unaudited)
|
|
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
|
|
September 30
|
|
%
|
|
September 30
|
|
%
|
(in thousands)
|
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
Operating Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher education
|
|
$
|
249,882
|
|
|
$
|
266,061
|
|
|
(6
|
)
|
|
$
|
755,597
|
|
|
$
|
811,013
|
|
|
(7
|
)
|
Test preparation
|
|
|
85,108
|
|
|
|
77,431
|
|
|
10
|
|
|
|
234,010
|
|
|
|
232,064
|
|
|
1
|
|
Kaplan international
|
|
|
207,615
|
|
|
|
198,452
|
|
|
5
|
|
|
|
615,507
|
|
|
|
564,705
|
|
|
9
|
|
Kaplan corporate and other
|
|
|
1,492
|
|
|
|
2,223
|
|
|
(33
|
)
|
|
|
4,891
|
|
|
|
6,496
|
|
|
(25
|
)
|
Intersegment elimination
|
|
|
(179
|
)
|
|
|
(568
|
)
|
|
-
|
|
|
|
(969
|
)
|
|
|
(1,162
|
)
|
|
-
|
|
|
|
$
|
543,918
|
|
|
$
|
543,599
|
|
|
0
|
|
|
$
|
1,609,036
|
|
|
$
|
1,613,116
|
|
|
0
|
|
Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher education
|
|
$
|
244,491
|
|
|
$
|
251,342
|
|
|
(3
|
)
|
|
$
|
716,110
|
|
|
$
|
768,659
|
|
|
(7
|
)
|
Test preparation
|
|
|
78,128
|
|
|
|
73,611
|
|
|
6
|
|
|
|
237,562
|
|
|
|
224,758
|
|
|
6
|
|
Kaplan international
|
|
|
193,762
|
|
|
|
186,328
|
|
|
4
|
|
|
|
574,898
|
|
|
|
541,004
|
|
|
6
|
|
Kaplan corporate and other
|
|
|
13,216
|
|
|
|
13,616
|
|
|
(3
|
)
|
|
|
43,850
|
|
|
|
37,571
|
|
|
17
|
|
Amortization of intangible assets
|
|
|
1,927
|
|
|
|
1,918
|
|
|
-
|
|
|
|
5,649
|
|
|
|
6,081
|
|
|
(7
|
)
|
Intersegment elimination
|
|
|
(157
|
)
|
|
|
(724
|
)
|
|
-
|
|
|
|
(1,083
|
)
|
|
|
(1,543
|
)
|
|
-
|
|
|
|
$
|
531,367
|
|
|
$
|
526,091
|
|
|
1
|
|
|
$
|
1,576,986
|
|
|
$
|
1,576,530
|
|
|
0
|
|
Operating Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher education
|
|
$
|
5,391
|
|
|
$
|
14,719
|
|
|
(63
|
)
|
|
$
|
39,487
|
|
|
$
|
42,354
|
|
|
(7
|
)
|
Test preparation
|
|
|
6,980
|
|
|
|
3,820
|
|
|
83
|
|
|
|
(3,552
|
)
|
|
|
7,306
|
|
|
-
|
|
Kaplan international
|
|
|
13,853
|
|
|
|
12,124
|
|
|
14
|
|
|
|
40,609
|
|
|
|
23,701
|
|
|
71
|
|
Kaplan corporate and other
|
|
|
(11,724
|
)
|
|
|
(11,393
|
)
|
|
(3
|
)
|
|
|
(38,959
|
)
|
|
|
(31,075
|
)
|
|
(25
|
)
|
Amortization of intangible assets
|
|
|
(1,927
|
)
|
|
|
(1,918
|
)
|
|
-
|
|
|
|
(5,649
|
)
|
|
|
(6,081
|
)
|
|
7
|
|
Intersegment elimination
|
|
|
(22
|
)
|
|
|
156
|
|
|
-
|
|
|
|
114
|
|
|
|
381
|
|
|
-
|
|
|
|
$
|
12,551
|
|
|
$
|
17,508
|
|
|
(28
|
)
|
|
$
|
32,050
|
|
|
$
|
36,586
|
|
|
(12
|
)
|
Depreciation
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher education
|
|
$
|
7,320
|
|
|
$
|
9,739
|
|
|
(25
|
)
|
|
$
|
22,140
|
|
|
$
|
33,919
|
|
|
(35
|
)
|
Test preparation
|
|
|
2,865
|
|
|
|
5,034
|
|
|
(43
|
)
|
|
|
9,721
|
|
|
|
14,658
|
|
|
(34
|
)
|
Kaplan international
|
|
|
4,951
|
|
|
|
3,870
|
|
|
28
|
|
|
|
14,546
|
|
|
|
11,903
|
|
|
22
|
|
Kaplan corporate and other
|
|
|
101
|
|
|
|
302
|
|
|
(67
|
)
|
|
|
617
|
|
|
|
1,038
|
|
|
(41
|
)
|
|
|
$
|
15,237
|
|
|
$
|
18,945
|
|
|
(20
|
)
|
|
$
|
47,024
|
|
|
$
|
61,518
|
|
|
(24
|
)
|
Pension Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher education
|
|
$
|
2,628
|
|
|
$
|
3,201
|
|
|
(18
|
)
|
|
$
|
7,885
|
|
|
$
|
8,815
|
|
|
(11
|
)
|
Test preparation
|
|
|
722
|
|
|
|
731
|
|
|
(1
|
)
|
|
|
2,166
|
|
|
|
2,012
|
|
|
8
|
|
Kaplan international
|
|
|
89
|
|
|
|
99
|
|
|
(10
|
)
|
|
|
267
|
|
|
|
273
|
|
|
(2
|
)
|
Kaplan corporate and other
|
|
|
415
|
|
|
|
138
|
|
|
-
|
|
|
|
1,245
|
|
|
|
1,406
|
|
|
(11
|
)
|
|
|
$
|
3,854
|
|
|
$
|
4,169
|
|
|
(8
|
)
|
|
$
|
11,563
|
|
|
$
|
12,506
|
|
|
(8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL INFORMATION GRAHAM HOLDINGS COMPANY (Unaudited)
In addition to the results reported in accordance with accounting
principles generally accepted in the United States (GAAP) included in
this press release, the Company has provided information regarding
income from continuing operations, excluding certain items described
below, reconciled to the most directly comparable GAAP measures.
Management believes these non-GAAP measures, when read in conjunction
with the Company's GAAP financials, provide useful information to
investors by offering:
-
the ability to make meaningful period-to-period comparisons of the
Company's ongoing results;
-
the ability to identify trends in the Company's underlying business;
and
-
a better understanding of how management plans and measures the
Company's underlying business.
Income from continuing operations, 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 per share impact of these items for the first nine months of 2014 is
different than the per share impact of these items for the distinct
quarterly periods of 2014, as a result of the Berkshire exchange
transaction.
The following table reconciles the non-GAAP financial measures to the
most directly comparable GAAP measures:
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
September 30
|
|
September 30
|
(in thousands, except per share amounts)
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Amounts attributable to Graham Holdings Company common
stockholders
|
|
|
|
|
|
|
|
|
Income from continuing operations, as reported
|
|
$
|
83,331
|
|
|
$
|
54,132
|
|
|
$
|
588,645
|
|
|
$
|
121,857
|
Adjustments:
|
|
|
|
|
|
|
|
|
Early retirement, restructuring charges and software asset write-offs
|
|
|
8,720
|
|
|
|
3,064
|
|
|
|
18,323
|
|
|
|
13,154
|
Classified Ventures sale of apartments.com
|
|
|
-
|
|
|
|
-
|
|
|
|
(58,242
|
)
|
|
|
-
|
Gain from exchange of Berkshire shares
|
|
|
-
|
|
|
|
-
|
|
|
|
(266,733
|
)
|
|
|
-
|
Sale of headquarters building
|
|
|
-
|
|
|
|
-
|
|
|
|
(81,836
|
)
|
|
|
-
|
Sale of wireless licenses
|
|
|
(48,235
|
)
|
|
|
-
|
|
|
|
(48,235
|
)
|
|
|
-
|
Foreign currency loss (gain)
|
|
|
6,772
|
|
|
|
(5,047
|
)
|
|
|
1,678
|
|
|
|
5,984
|
Income from continuing operations, adjusted (non-GAAP)
|
|
$
|
50,588
|
|
|
$
|
52,149
|
|
|
$
|
153,600
|
|
|
$
|
140,995
|
|
|
|
|
|
|
|
|
|
Per share information attributable to Graham Holdings Company
common stockholders
|
|
|
|
|
|
|
|
|
Diluted income per common share from continuing operations, as
reported
|
|
$
|
14.32
|
|
|
$
|
7.28
|
|
|
$
|
85.24
|
|
|
$
|
16.41
|
Adjustments:
|
|
|
|
|
|
|
|
|
Early retirement, restructuring charges and software asset write-offs
|
|
|
1.50
|
|
|
|
0.42
|
|
|
|
2.65
|
|
|
|
1.80
|
Classified Ventures sale of apartments.com
|
|
|
-
|
|
|
|
-
|
|
|
|
(8.43
|
)
|
|
|
-
|
Gain from exchange of Berkshire shares
|
|
|
-
|
|
|
|
-
|
|
|
|
(38.61
|
)
|
|
|
-
|
Sale of headquarters building
|
|
|
-
|
|
|
|
-
|
|
|
|
(11.85
|
)
|
|
|
-
|
Sale of wireless licenses
|
|
|
(8.29
|
)
|
|
|
-
|
|
|
|
(6.98
|
)
|
|
|
-
|
Foreign currency loss (gain)
|
|
|
1.16
|
|
|
|
(0.69
|
)
|
|
|
0.24
|
|
|
|
0.83
|
Diluted income per common share from continuing operations, adjusted
(non-GAAP)
|
|
$
|
8.69
|
|
|
$
|
7.01
|
|
|
$
|
22.26
|
|
|
$
|
19.04
|
|
|
|
|
|
|
|
|
|
The adjusted diluted per share amounts may not compute due to
rounding.
|
|
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|