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Investor Relations

SEC Filings

10-Q
GRAHAM HOLDINGS CO filed this Form 10-Q on 08/16/1995
Entire Document
 
<PAGE>   6


                                                                              6.


The Washington Post Company

Notes to Condensed Consolidated Financial Statements (Unaudited)


Note  1:  Results  of operations, when examined  on a quarterly basis, reflect 
the seasonality  of advertising  that affects  the newspaper, magazine and 
broadcasting  operations. Advertising  revenues  in  the second and fourth
quarters  are typically higher than first  and third quarter revenues.  All
adjustments reflected in  the interim financial statements are of a normal
recurring nature.

Note 2:  Summarized combined (unaudited) results of operations for the second
quarter and year-to-date of 1995 and 1994 for the company's affiliates are as
follows (in thousands):


<TABLE>
<CAPTION>
                                   Second Quarter       Year-to-Date    
                               -------------------   -----------------
                                  1995      1994       1995     1994  
                                --------- ---------  --------- -------
         <S>                    <C>        <C>       <C>       <C>
         Operating revenues     $229,850   $199,742  $430,660  $360,661
         Operating income         31,427     19,111    46,841    16,670
         Net income (loss)        19,909      6,152    27,679      (240)
</TABLE>


Note  3:  In April 1994 the  company acquired substantially all of the assets
comprising  the businesses  of television stations  KPRC-TV, an NBC affiliate 
in Houston, Texas, and KSAT-TV, an ABC affiliate in San Antonio,  Texas,  for 
$253 million  in  cash.    The transaction  was accounted  for as  a purchase 
and the  results of  operations of  the television  stations were included with 
those of the  company for the period subsequent to the date of acquisition.

        The following  statement presents the  company's unaudited  pro forma
condensed consolidated income statement for the six months ended July 3, 1994, 
as if the  acquisition of  the television stations  had occurred at the
beginning of the six month period.  Amounts reflect an allocation  of the
purchase price to the acquired net tangible assets, with  the excess  being
amortized  over  a period  of 20  years.   The revenues and results of 
operations presented in the pro  forma income statement do not  necessarily
reflect the  results of operations  that would actually have been  obtained if
the acquisition had  occurred at the beginning of the six month period.