Investor Relations - ReleasesReleasesGraham Holdings Company Reports First Quarter Earnings | ARLINGTON, Va.--(BUSINESS WIRE)--May 4, 2016--
Graham Holdings Company (NYSE: GHC) today reported income from
continuing operations attributable to common shares of $37.8 million
($6.59 per share) for the first quarter of 2016, compared to a loss of
$2.7 million ($0.58 per share) for the first quarter of 2015. Net income
attributable to common shares was $20.6 million ($3.48 per share) for
the first quarter of 2015, including $23.3 million ($4.06 per share) in
income from discontinued operations. (Refer to “Discontinued Operations”
discussion below.)
The results for the first quarter of 2016 and 2015 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 $28.2 million ($4.92 per share) for the first quarter of
2016, compared to $4.9 million ($0.84 per share) for the first quarter
of 2015. (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 first quarter of 2016:
-
an $18.9 million non-operating gain arising from the sale of a
business (after-tax impact of $11.9 million, or $2.08 per share);
-
a $1.8 million gain on the sale of marketable equity securities
(after-tax impact of $1.1 million, or $0.19 per share); and
-
$5.4 million in non-operating unrealized foreign currency losses
(after-tax impact of $3.4 million, or $0.60 per share).
Items included in the Company’s loss from continuing operations for the
first quarter of 2015:
-
$10.7 million in restructuring charges and accelerated depreciation at
the education division (after-tax impact of $6.8 million, or $1.17 per
share);
-
$6.0 million gain on the formation of a joint venture (after-tax
impact of $3.6 million, or $0.50 per share); and
-
$6.8 million in non-operating unrealized foreign currency losses
(after-tax impact of $4.4 million, or $0.75 per share).
Revenue for the first quarter of 2016 was $601.7 million, down 7% from
$647.4 million in the first quarter of 2015. Revenues declined at the
education division, offset by an increase at the television broadcasting
division and in other businesses. The Company reported operating income
of $51.9 million for the first quarter of 2016, compared to $8.9 million
for the first quarter of 2015. Operating results improved at the
education and television broadcasting divisions, offset by a small
decline in other businesses.
Division Results
Education
Education division revenue totaled $401.1 million for the first quarter
of 2016, down 20% from revenue of $500.6 million for the same period of
2015. Kaplan reported operating income of $14.5 million for the first
quarter of 2016, compared to an operating loss of $22.8 million for the
first quarter of 2015. Operating results for the first quarter of 2015
included restructuring costs of $10.7 million.
A summary of Kaplan’s operating results for the first quarter of 2016
compared to 2015 is as follows:
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31
|
|
|
(in thousands)
|
|
2016
|
|
2015
|
|
% Change
|
Revenue
|
|
|
|
|
|
|
Higher education
|
|
$
|
165,549
|
|
|
$
|
237,568
|
|
|
(30
|
)
|
Test preparation
|
|
66,462
|
|
|
69,226
|
|
|
(4
|
)
|
Kaplan international
|
|
169,287
|
|
|
192,081
|
|
|
(12
|
)
|
Kaplan corporate and other
|
|
125
|
|
|
1,859
|
|
|
(93
|
)
|
Intersegment elimination
|
|
(347
|
)
|
|
(132
|
)
|
|
—
|
|
|
|
$
|
401,076
|
|
|
$
|
500,602
|
|
|
(20
|
)
|
Operating Income (Loss)
|
|
|
|
|
|
|
Higher education
|
|
$
|
21,306
|
|
|
$
|
593
|
|
|
—
|
|
Test preparation
|
|
(2,310
|
)
|
|
(4,334
|
)
|
|
47
|
|
Kaplan international
|
|
4,897
|
|
|
7,717
|
|
|
(37
|
)
|
Kaplan corporate and other
|
|
(7,724
|
)
|
|
(25,350
|
)
|
|
70
|
|
Amortization of intangible assets
|
|
(1,681
|
)
|
|
(1,507
|
)
|
|
(12
|
)
|
Intersegment elimination
|
|
—
|
|
|
32
|
|
|
—
|
|
|
|
$
|
14,488
|
|
|
$
|
(22,849
|
)
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 and other continuing education businesses.
Since 2012, KHE has closed campuses, consolidated facilities and reduced
its workforce. On September 3, 2015, Kaplan completed the sale of
substantially all of the remaining assets of its KHE Campuses business.
In connection with these and other plans, KHE incurred $2.8 million in
restructuring costs in the first quarter of 2015, including severance
($1.1 million), lease obligation losses ($0.9 million), accelerated
depreciation ($0.7 million) and other items ($0.1 million).
KHE results include revenue and operating losses (including
restructuring charges) related to all KHE Campuses, those sold or
closed, including Mount Washington College and Bauder College, as
follows:
|
|
|
|
|
Three Months Ended
|
|
|
March 31
|
(in thousands)
|
|
2016
|
|
2015
|
Revenue
|
|
$
|
798
|
|
|
$
|
65,307
|
|
Operating loss
|
|
$
|
(1,192
|
)
|
|
$
|
(12,288
|
)
|
|
|
|
|
|
|
|
|
|
In the first quarter of 2016, KHE revenue declined 30% due to campus
sales and closings, and declines in average enrollments at Kaplan
University, reflecting weaker market demand. KHE operating results
improved in the first quarter of 2016 due to reduced losses at the KHE
Campuses business and lower marketing expenditures at Kaplan University.
New higher education student enrollments at Kaplan University declined
34% in the first quarter of 2016 due to lower demand across Kaplan
University programs and a timing shift in the academic calendar in the
first quarter of 2016. Total students at Kaplan University were 37,398
at March 31, 2016, down 18% from March 31, 2015.
Kaplan University enrollments at March 31, 2016 and 2015, by degree and
certificate programs, are as follows:
|
|
|
|
|
As of March 31
|
|
|
2016
|
|
2015
|
Certificate
|
|
5.8
|
%
|
|
2.5
|
%
|
Associate’s
|
|
22.1
|
%
|
|
29.7
|
%
|
Bachelor’s
|
|
50.5
|
%
|
|
45.4
|
%
|
Master’s
|
|
21.6
|
%
|
|
22.4
|
%
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
Kaplan Test Preparation (KTP) includes Kaplan’s standardized test
preparation programs. KTP revenue declined 4% for the first quarter of
2016. Enrollments, excluding the new economy skills training offerings,
were down 14% for the first three months of 2016 due primarily to
declines in pre-college programs; however, unit prices were generally
higher. In comparison, KTP operating results improved in the first
quarter of 2016 due to a reduction in operating expenses.
Kaplan International includes English-language programs, and
postsecondary education and professional training businesses largely
outside the United States. In January and February 2016, Kaplan acquired
Mander Portman Woodward, a leading provider of high-quality, bespoke
education to U.K. and international students in London, Cambridge and
Birmingham; and Osborne Books, a leading education publisher of learning
resources for accounting qualifications in the U.K.
Kaplan International revenue declined 12% in the first quarter of 2016,
of which 4% was due to currency fluctuations. The remaining decrease is
due to enrollment declines in English-language and Pathways programs,
partially offset by enrollment growth in Singapore and Australia higher
education programs. Revenue growth from the acquisitions in the first
quarter of 2016 was largely offset by revenue declines due to prior year
dispositions. Operating income declined in the first quarter of 2016,
due largely to the declines in English-language and Pathways results,
partially offset by operating income from newly acquired businesses.
Kaplan corporate and other represents unallocated expenses of Kaplan,
Inc.’s corporate office, other minor businesses and certain shared
activities. In the first quarter of 2015, Kaplan Corporate recorded $7.6
million in restructuring charges, including accelerated depreciation
($6.5 million) and lease obligation losses ($1.1 million), related to
office space managed by Kaplan corporate. In addition to lower
restructuring costs, Kaplan corporate expenses also declined due to the
benefits from restructuring activities, as well as 2015 spending for the
replacement of its human resources system.
In the first quarter of 2016, Kaplan sold Colloquy, which was a part of
Kaplan corporate and other, for a gain of $18.9 million that is included
in other non-operating income.
Television Broadcasting
Revenue at the television broadcasting division increased 10% to $92.0
million in the first quarter of 2016, from $83.6 million in the same
period of 2015; operating income for the first quarter of 2016 increased
7% to $41.2 million, from $38.6 million in the same period of 2015. The
revenue increase is due primarily to $4.8 million in increased
retransmission revenues and a $2.8 million increase in political
advertising revenue. The increase in operating income is due to the
revenue increase, offset by higher spending on digital initiatives and
increased network fees.
Other Businesses
Other businesses is comprised of three manufacturing businesses,
including Dekko, a manufacturer of electrical workspace solutions,
architectural lighting, and electrical components and assemblies
acquired in November 2015; and providers of home health and hospice
services. Other businesses also include SocialCode, a provider of
marketing solutions on social-media platforms; Slate and Foreign Policy,
which publish online and print magazines and websites; and certain other
new ventures.
The increase in revenues for the first quarter of 2016 is mostly due to
the Dekko acquisition. In the first quarter of 2016, positive operating
results from the healthcare and manufacturing businesses were offset by
intangibles amortization and losses from publishing, SocialCode and new
ventures.
Supplementary information regarding manufacturing results is as follows:
|
|
|
|
|
Three Months Ended
|
|
|
March 31
|
(in thousands)
|
|
2016
|
Operating revenues
|
|
$
|
56,675
|
Operating expenses
|
|
50,848
|
Depreciation
|
|
1,873
|
Amortization of intangible assets
|
|
2,817
|
Operating income
|
|
$
|
1,137
|
|
|
|
|
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. The total pension credit for the Company’s traditional
defined benefit plan was $16.0 million and $17.1 million in the first
three months of 2016 and 2015, respectively.
Without the pension credit, corporate office expenses declined in the
first quarter of 2016 due primarily to lower compensation costs.
Equity in Earnings (Losses) of Affiliates
At March 31, 2016, the Company held interests in a number of home health
and hospice joint ventures, and interests in several other affiliates.
The Company recorded equity in earnings of affiliates of $1.0 million
for the first quarter of 2016, compared to losses of $0.4 million for
the first quarter of 2015.
Other Non-Operating Income (Expense)
The Company recorded total other non-operating income, net, of $15.1
million for the first quarter of 2016, compared to a loss of $1.1
million for the first quarter of 2015. The 2016 amounts included an
$18.9 million gain on the sale of a business and a $1.8 million gain on
the sale of marketable equity securities, offset by $5.4 million in
unrealized foreign currency losses and other items. The 2015 amounts
included $6.8 million in unrealized foreign currency losses and other
items, offset by a $6.0 million gain on the Celtic joint venture
transaction.
Net Interest Expense and Related Balances
The Company incurred net interest expense of $7.4 million for the first
quarter of 2016, compared to $7.9 million for the same period of 2015.
At March 31, 2016, the Company had $399.9 million in borrowings
outstanding at an average interest rate of 7.2% and cash, marketable
equity securities and other investments of $949.4 million.
Provision for Income Taxes
The Company's effective tax rate for the first three months of 2016 was
37.0%.
Discontinued Operations
On July 1, 2015, the Company completed the spin-off of Cable ONE as an
independent, publicly traded company.
In the third quarter of 2014, Kaplan completed the sale of three of its
schools in China that were previously part of Kaplan International. An
additional school was sold by Kaplan in January 2015.
As a result of these transactions, income from continuing operations
excludes the operating results and related loss, if any, on dispositions
of these businesses, which have been reclassified to discontinued
operations, net of tax, in 2015.
Earnings (Loss) Per Share
The calculation of diluted earnings (loss) per share for the first
quarter of 2016 was based on 5,651,655 weighted average shares
outstanding, compared to 5,790,768 for the first quarter of 2015. At
March 31, 2016, there were 5,634,613 shares outstanding. On May 14,
2015, the Board of Directors authorized the Company to acquire up to
500,000 shares of its Class B common stock; the Company has remaining
authorization for 284,008 shares as of March 31, 2016.
Forward-Looking Statements
This press release 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
|
|
|
|
|
March 31
|
|
%
|
(in thousands, except per share amounts)
|
|
2016
|
|
2015
|
|
Change
|
Operating revenues
|
|
$
|
601,740
|
|
|
$
|
647,425
|
|
|
(7
|
)
|
Operating expenses
|
|
526,845
|
|
|
611,628
|
|
|
(14
|
)
|
Depreciation of property, plant and equipment
|
|
16,761
|
|
|
22,197
|
|
|
(24
|
)
|
Amortization of intangible assets
|
|
6,262
|
|
|
4,738
|
|
|
32
|
|
Operating income
|
|
51,872
|
|
|
8,862
|
|
|
—
|
|
Equity in earnings (losses) of affiliates, net
|
|
1,004
|
|
|
(404
|
)
|
|
—
|
|
Interest income
|
|
591
|
|
|
559
|
|
|
6
|
|
Interest expense
|
|
(7,948
|
)
|
|
(8,501
|
)
|
|
(7
|
)
|
Other income (expense), net
|
|
15,096
|
|
|
(1,105
|
)
|
|
—
|
|
Income (loss) from continuing operations before income taxes
|
|
60,615
|
|
|
(589
|
)
|
|
—
|
|
Provision for income taxes
|
|
22,400
|
|
|
900
|
|
|
—
|
|
Income (loss) from continuing operations
|
|
38,215
|
|
|
(1,489
|
)
|
|
—
|
|
Income from discontinued operations, net of tax
|
|
—
|
|
|
23,289
|
|
|
—
|
|
Net income
|
|
38,215
|
|
|
21,800
|
|
|
75
|
|
Net income attributable to noncontrolling interests
|
|
(435
|
)
|
|
(774
|
)
|
|
(44
|
)
|
Net income attributable to Graham Holdings Company
|
|
37,780
|
|
|
21,026
|
|
|
80
|
|
Redeemable preferred stock dividends
|
|
—
|
|
|
(420
|
)
|
|
—
|
|
Net Income Attributable to Graham Holdings Company Common
Stockholders
|
|
$
|
37,780
|
|
|
$
|
20,606
|
|
|
83
|
|
Amounts Attributable to Graham Holdings Company Common
Stockholders
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
$
|
37,780
|
|
|
$
|
(2,683
|
)
|
|
—
|
|
Income from discontinued operations, net of tax
|
|
—
|
|
|
23,289
|
|
|
—
|
|
Net income
|
|
$
|
37,780
|
|
|
$
|
20,606
|
|
|
83
|
|
Per Share Information Attributable to Graham Holdings Company
Common Stockholders
|
|
|
|
|
|
|
Basic income (loss) per common share from continuing operations
|
|
$
|
6.63
|
|
|
$
|
(0.58
|
)
|
|
—
|
|
Basic income per common share from discontinued operations
|
|
—
|
|
|
4.09
|
|
|
—
|
|
Basic net income per common share
|
|
$
|
6.63
|
|
|
$
|
3.51
|
|
|
89
|
|
Basic average number of common shares outstanding
|
|
5,623
|
|
|
5,704
|
|
|
|
Diluted income (loss) per common share from continuing operations
|
|
$
|
6.59
|
|
|
$
|
(0.58
|
)
|
|
—
|
|
Diluted income per common share from discontinued operations
|
|
—
|
|
|
4.06
|
|
|
—
|
|
Diluted net income per common share
|
|
$
|
6.59
|
|
|
$
|
3.48
|
|
|
89
|
|
Diluted average number of common shares outstanding
|
|
5,652
|
|
|
5,791
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GRAHAM HOLDINGS COMPANY
|
BUSINESS SEGMENT INFORMATION
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31
|
|
%
|
(in thousands)
|
|
2016
|
|
2015
|
|
Change
|
Operating Revenues
|
|
|
|
|
|
|
Education
|
|
$
|
401,076
|
|
|
$
|
500,602
|
|
|
(20
|
)
|
Television broadcasting
|
|
92,018
|
|
|
83,564
|
|
|
10
|
|
Other businesses
|
|
108,716
|
|
|
63,259
|
|
|
72
|
|
Corporate office
|
|
—
|
|
|
—
|
|
|
—
|
|
Intersegment elimination
|
|
(70
|
)
|
|
—
|
|
|
—
|
|
|
|
$
|
601,740
|
|
|
$
|
647,425
|
|
|
(7
|
)
|
Operating Expenses
|
|
|
|
|
|
|
Education
|
|
$
|
386,588
|
|
|
$
|
523,451
|
|
|
(26
|
)
|
Television broadcasting
|
|
50,798
|
|
|
45,002
|
|
|
13
|
|
Other businesses
|
|
114,446
|
|
|
68,421
|
|
|
67
|
|
Corporate office
|
|
(1,894
|
)
|
|
1,689
|
|
|
—
|
|
Intersegment elimination
|
|
(70
|
)
|
|
—
|
|
|
—
|
|
|
|
$
|
549,868
|
|
|
$
|
638,563
|
|
|
(14
|
)
|
Operating Income (Loss)
|
|
|
|
|
|
|
Education
|
|
$
|
14,488
|
|
|
$
|
(22,849
|
)
|
|
—
|
|
Television broadcasting
|
|
41,220
|
|
|
38,562
|
|
|
7
|
|
Other businesses
|
|
(5,730
|
)
|
|
(5,162
|
)
|
|
(11
|
)
|
Corporate office
|
|
1,894
|
|
|
(1,689
|
)
|
|
—
|
|
|
|
$
|
51,872
|
|
|
$
|
8,862
|
|
|
—
|
|
Depreciation
|
|
|
|
|
|
|
Education
|
|
$
|
11,103
|
|
|
$
|
18,528
|
|
|
(40
|
)
|
Television broadcasting
|
|
2,377
|
|
|
2,109
|
|
|
13
|
|
Other businesses
|
|
3,027
|
|
|
1,302
|
|
|
—
|
|
Corporate office
|
|
254
|
|
|
258
|
|
|
(2
|
)
|
|
|
$
|
16,761
|
|
|
$
|
22,197
|
|
|
(24
|
)
|
Amortization of Intangible Assets
|
|
|
|
|
|
|
Education
|
|
$
|
1,681
|
|
|
$
|
1,507
|
|
|
12
|
|
Television broadcasting
|
|
63
|
|
|
63
|
|
|
—
|
|
Other businesses
|
|
4,518
|
|
|
3,168
|
|
|
43
|
|
Corporate office
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
$
|
6,262
|
|
|
$
|
4,738
|
|
|
32
|
|
Pension Expense (Credit)
|
|
|
|
|
|
|
Education
|
|
$
|
3,109
|
|
|
$
|
3,947
|
|
|
(21
|
)
|
Television broadcasting
|
|
439
|
|
|
391
|
|
|
12
|
|
Other businesses
|
|
254
|
|
|
193
|
|
|
32
|
|
Corporate office
|
|
(15,861
|
)
|
|
(16,938
|
)
|
|
(6
|
)
|
|
|
$
|
(12,059
|
)
|
|
$
|
(12,407
|
)
|
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GRAHAM HOLDINGS COMPANY
|
EDUCATION DIVISION INFORMATION
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31
|
|
%
|
(in thousands)
|
|
2016
|
|
2015
|
|
Change
|
Operating Revenues
|
|
|
|
|
|
|
Higher education
|
|
$
|
165,549
|
|
|
$
|
237,568
|
|
|
(30
|
)
|
Test preparation
|
|
66,462
|
|
|
69,226
|
|
|
(4
|
)
|
Kaplan international
|
|
169,287
|
|
|
192,081
|
|
|
(12
|
)
|
Kaplan corporate and other
|
|
125
|
|
|
1,859
|
|
|
(93
|
)
|
Intersegment elimination
|
|
(347
|
)
|
|
(132
|
)
|
|
—
|
|
|
|
$
|
401,076
|
|
|
$
|
500,602
|
|
|
(20
|
)
|
Operating Expenses
|
|
|
|
|
|
|
Higher education
|
|
$
|
144,243
|
|
|
$
|
236,975
|
|
|
(39
|
)
|
Test preparation
|
|
68,772
|
|
|
73,560
|
|
|
(7
|
)
|
Kaplan international
|
|
164,390
|
|
|
184,364
|
|
|
(11
|
)
|
Kaplan corporate and other
|
|
7,849
|
|
|
27,209
|
|
|
(71
|
)
|
Amortization of intangible assets
|
|
1,681
|
|
|
1,507
|
|
|
12
|
|
Intersegment elimination
|
|
(347
|
)
|
|
(164
|
)
|
|
—
|
|
|
|
$
|
386,588
|
|
|
$
|
523,451
|
|
|
(26
|
)
|
Operating Income (Loss)
|
|
|
|
|
|
|
Higher education
|
|
$
|
21,306
|
|
|
$
|
593
|
|
|
—
|
|
Test preparation
|
|
(2,310
|
)
|
|
(4,334
|
)
|
|
47
|
|
Kaplan international
|
|
4,897
|
|
|
7,717
|
|
|
(37
|
)
|
Kaplan corporate and other
|
|
(7,724
|
)
|
|
(25,350
|
)
|
|
70
|
|
Amortization of intangible assets
|
|
(1,681
|
)
|
|
(1,507
|
)
|
|
(12
|
)
|
Intersegment elimination
|
|
—
|
|
|
32
|
|
|
—
|
|
|
|
$
|
14,488
|
|
|
$
|
(22,849
|
)
|
|
—
|
|
Depreciation
|
|
|
|
|
|
|
Higher education
|
|
$
|
4,175
|
|
|
$
|
4,828
|
|
|
(14
|
)
|
Test preparation
|
|
1,781
|
|
|
2,890
|
|
|
(38
|
)
|
Kaplan international
|
|
5,060
|
|
|
4,654
|
|
|
9
|
|
Kaplan corporate and other
|
|
87
|
|
|
6,156
|
|
|
(99
|
)
|
|
|
$
|
11,103
|
|
|
$
|
18,528
|
|
|
(40
|
)
|
Pension Expense
|
|
|
|
|
|
|
Higher education
|
|
$
|
1,905
|
|
|
$
|
2,532
|
|
|
(25
|
)
|
Test preparation
|
|
768
|
|
|
775
|
|
|
(1
|
)
|
Kaplan international
|
|
67
|
|
|
106
|
|
|
(37
|
)
|
Kaplan corporate and other
|
|
369
|
|
|
534
|
|
|
(31
|
)
|
|
|
$
|
3,109
|
|
|
$
|
3,947
|
|
|
(21
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 that 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 following table reconciles the non-GAAP financial measures to the
most directly comparable GAAP measures:
|
|
|
|
|
Three Months Ended
|
|
|
March 31
|
(in thousands, except per share amounts)
|
|
2016
|
|
2015
|
Amounts attributable to Graham Holdings Company Common
Stockholders
|
|
|
|
|
Income (loss) from continuing operations, as reported
|
|
$
|
37,780
|
|
|
$
|
(2,683
|
)
|
Adjustments:
|
|
|
|
|
Restructuring charges
|
|
—
|
|
|
6,841
|
|
Gain from the sale of a business and the formation of a joint venture
|
|
(11,927
|
)
|
|
(3,643
|
)
|
Gain on the sale of marketable equity securities
|
|
(1,105
|
)
|
|
—
|
|
Foreign currency loss
|
|
3,429
|
|
|
4,370
|
|
Income from continuing operations, adjusted (non-GAAP)
|
|
$
|
28,177
|
|
|
$
|
4,885
|
|
|
|
|
|
|
Per share information attributable to Graham Holdings Company
Common Stockholders
|
|
|
|
|
Diluted income (loss) per common share from continuing operations,
as reported
|
|
$
|
6.59
|
|
|
$
|
(0.58
|
)
|
Adjustments:
|
|
|
|
|
Restructuring charges
|
|
—
|
|
|
1.17
|
|
Gain from the sale of a business and the formation of a joint venture
|
|
(2.08
|
)
|
|
(0.50
|
)
|
Gain on the sale of marketable equity securities
|
|
(0.19
|
)
|
|
—
|
|
Foreign currency loss
|
|
0.60
|
|
|
0.75
|
|
Diluted income per common share from continuing operations, adjusted
(non-GAAP)
|
|
$
|
4.92
|
|
|
$
|
0.84
|
|
|
|
|
|
|
The adjusted diluted per share amounts may not compute due to
rounding.
|

View source version on businesswire.com: http://www.businesswire.com/news/home/20160504006039/en/
Source: Graham Holdings Company
Graham Holdings Company Hal S. Jones, 703-345-6370
|
|