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Investor Relations

SEC Filings

10-Q
GRAHAM HOLDINGS CO filed this Form 10-Q on 08/16/1994
Entire Document
 
<PAGE>   8
                                                                              8.
revenues increased almost 1 percent compared with the first quarter of 1993.

BROADCAST DIVISION.  Revenues at the broadcast division, which include the
results of the two Texas television stations purchased at the end of April,
increased 39 percent over the second quarter of 1993.  Local advertising
revenues increased 49 percent and national advertising revenues rose 36 percent
in the second quarter of 1994.  Approximately 80 percent of the increase is
attributable to the newly acquired stations.

MAGAZINE DIVISION.  Newsweek revenues in the second quarter of 1994 increased 1
percent. Advertising revenues rose almost 1 percent, primarily due to a slight
increase in volume at the domestic edition and higher rates at the
international editions.  Circulation revenues were up 2 percent at Newsweek,
with increased newsstand sales the major contributor to the improvement.  In
the second quarter Newsweek published the same number of weekly issues (13) as
in 1993, but 1994 includes 1 additional newsstand-only special issue.

CABLE DIVISION.  At the cable division second quarter 1994 revenues were 4
percent lower than 1993, primarily as a result of an 8 percent decline in
subscriber revenues.  This decrease in subscriber revenues is a result of the
decrease in subscriber rates attributable to the rate freeze and reductions
enacted in the 1992 Cable Act and the results of operations in the United
Kingdom, which were subsequently sold during 1993.  Excluding foreign
operations, cable division revenues decreased 1 percent in the second quarter
of 1994.

OTHER BUSINESSES.  In the second quarter of 1994, revenues from other
businesses, principally Stanley H. Kaplan Educational Center, Pro Am Sports
System (PASS), and Legi-Slate, increased 8 percent.  Revenues at Kaplan rose 5
percent over the second quarter of 1993, and enrollments increased 3 percent.

EQUITY IN EARNINGS AND LOSSES OF AFFILIATES.  The company's equity in earnings
of affiliates in the second quarter of 1994 was income of $2.2 million,
compared with a loss of $.6 million in the second quarter of 1993.  Better
results at the company's newspaper affiliates were the major factor
contributing to the improvement.

NON-OPERATING ITEMS.  Interest income, net of interest expense, was $.6
million, compared with $1.5 million in the same period last year.  The decrease
was attributable to lower invested cash balances.

SIX MONTH COMPARISONS

     Earnings for the first six months of 1994 were $70.1 million, an increase
of 5 percent over net income of $66.5 million in the first half of 1993.
Earnings per share increased 6 percent to $5.99 per