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Investor Relations

SEC Filings

10-Q
GRAHAM HOLDINGS CO filed this Form 10-Q on 05/18/1994
Entire Document
 
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adverse weather conditions in January and February in the Washington, D.C.,
area; Sunday circulation was even with the same period last year.

Broadcast Division.  Revenues at the broadcast division increased 13 percent
over the first quarter of 1993.  Local advertising revenues increased 15
percent and national advertising revenues rose 12 percent in the first quarter
of 1994.  The major factor contributing to this improvement was an increase in
automotive advertising.

Magazine Division.  Newsweek revenues in the first quarter of 1994 decreased 8
percent, principally due to a 12 percent decline in advertising revenues.
Fewer pages and lower rates at the domestic edition were the major contributors
to the decrease.  Circulation revenues fell 3 percent at Newsweek, primarily
due to lower volume at both the domestic and international divisions.  In the
first quarter of 1994 Newsweek published the same number of weekly (13) and
special (1) issues as in 1993.

Cable Division.  At the cable division first quarter 1994 revenues were 3
percent lower than 1993, including operations in the United Kingdom, which were
subsequently sold during 1993.  Excluding foreign operations, cable division
revenues were even with the first three months of 1993.  A 2 percent increase
in basic subscribers was offset by a decrease in subscriber rates attributable
to the rate freeze and reductions enacted in the 1992 Cable Act.

Other Businesses.  In the first quarter of 1994, revenues from other
businesses, principally Stanley H. Kaplan Educational Center, Pro Am Sports
System (PASS), and Legi-Slate, increased 10 percent.  Revenues at Kaplan
increased 7 percent over the first three months of 1993, and enrollments
increased 8 percent.

Equity in Earnings and Losses of Affiliates.  The company's equity in earnings
of affiliates in the first quarter of 1994 was a loss of $5.4 million, compared
with a loss of $1.8 million in the first quarter of 1993.  Lower results at the
company's affiliated newsprint mills, which included a large gain on the sale
of land in the first three months of 1993, were the major reason for the
decrease.

Non-operating Items.  Interest income, net of interest expense, was $2.1
million, compared with $1.2 million in the same period last year.  The increase
was attributable to higher invested cash balances.

     Other income in the first quarter of 1994 was $2.6 million, compared
with other expense of $.1 million in the first quarter of 1993.  In 1994 other
income included a gain of $2.5 million resulting from a change in the company's
ownership interest in one of its affiliates.

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