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SEC Filings

10-Q
GRAHAM HOLDINGS CO filed this Form 10-Q on 05/03/2017
Entire Document
 


Other Businesses
A summary of Other Businesses’ operating results for the first quarter of 2017 compared to 2016 is as follows:
  
Three Months Ended
 
  
  
March 31
 
%
(in thousands)
2017
 
2016
 
Change
Operating Revenues
  
 
  
 
  
Manufacturing
$
61,898

 
$
56,675

 
9

Healthcare
36,899

 
35,880

 
3

SocialCode
12,574

 
10,655

 
18

Other
6,953

 
5,506

 
26

  
$
118,324

 
$
108,716

 
9

Operating Expenses
  

 
  

 
  

Manufacturing
$
58,233

 
$
55,538

 
5

Healthcare
37,825

 
33,361

 
13

SocialCode
17,082

 
13,625

 
25

Other
15,748

 
11,922

 
32

  
$
128,888

 
$
114,446

 
13

Operating Income (Loss)
  

 
  

 
  
Manufacturing
$
3,665

 
$
1,137

 

Healthcare
(926
)
 
2,519

 

SocialCode
(4,508
)
 
(2,970
)
 
(52
)
Other
(8,795
)
 
(6,416
)
 
(37
)
  
$
(10,564
)
 
$
(5,730
)
 
(84
)
Depreciation
  

 
  

 
  
Manufacturing
$
1,508

 
$
1,873

 
(19
)
Healthcare
1,069

 
737

 
45

SocialCode
246

 
229

 
7

Other
361

 
188

 
92

  
$
3,184

 
$
3,027

 
5

Amortization of Intangible Assets
  

 
  

 
  
Manufacturing
$
3,077

 
$
2,817

 
9

Healthcare
1,654

 
1,681

 
(2
)
SocialCode
83

 

 

Other

 
20

 

  
$
4,814

 
$
4,518

 
7

Pension Expense
  

 
  

 
  
Manufacturing
$
25

 
$
18

 
39

Healthcare
166

 

 

SocialCode
154

 
124

 
24

Other
138

 
112

 
23

  
$
483

 
$
254

 
90

Manufacturing includes three businesses: Dekko, a manufacturer of electrical workspace solutions, architectural lighting and electrical components and assemblies; Joyce/Dayton Corp., a Dayton, OH-based manufacturer of screw jacks and other linear motion systems; and Forney, a global supplier of products and systems that control and monitor combustion processes in electric utility and industrial applications. In September 2016, Dekko acquired Electri-Cable Assemblies (ECA), a Shelton, CT-based manufacturer of power, data and electrical solutions for the office furniture industry.
Manufacturing revenues and operating income increased in the first three months of 2017 due to growth and improved results at Dekko, including the ECA acquisition.
In April 2017, the Company acquired Hoover Treated Wood Products, Inc., a Thomson, GA-based supplier of pressure impregnated kiln-dried lumber and plywood products for fire retardant and preservative applications.
The Graham Healthcare Group (GHG) provides home health and hospice services in three states. In June 2016, the Company acquired the outstanding 20% redeemable noncontrolling interest in Residential Healthcare (Residential). Also in June 2016, Celtic Healthcare (Celtic) and Residential combined their business operations and the Company now owns 90% of the combined entity, known as GHG. Healthcare revenues increased 3% in the first three months of 2017, while operating results were down due largely to an increase in information systems and other integration costs.

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