WASHINGTON--(BUSINESS WIRE)--May. 4, 2012--
The Washington Post Company (NYSE: WPO) today reported net income
attributable to common shares of $31.0 million ($4.07 per share) for the
first quarter ended March 31, 2012, compared to $15.2 million ($1.87 per
share) for the first quarter of last year. Net income includes $20.2
million ($2.70 per share) in income from discontinued operations and
$2.8 million ($0.34 per share) in losses from discontinued operations
for the first quarter of 2012 and 2011, respectively. Income from
continuing operations attributable to common shares was $10.8 million
($1.37 per share) for the first quarter of 2012, compared to $17.9
million ($2.21 per share) for the first quarter of 2011. As a result of
the Company’s share repurchases, there were 6% fewer diluted average
shares outstanding in the first quarter of 2012.
Items included in the Company’s income from continuing operations for
the first quarter of 2012:
-
$1.9 million in severance and early retirement charges at the
newspaper publishing division (after-tax impact of $1.2 million, or
$0.16 per share);
-
a $5.8 million gain on sales of cost method investments (after-tax
impact of $3.7 million, or $0.48 per share); and
-
$2.7 million in non-operating unrealized foreign currency gains
(after-tax impact of $1.7 million, or $0.22 per share).
Items included in the Company’s income from continuing operations for
the first quarter of 2011:
-
$2.3 million in severance and restructuring charges at Kaplan
(after-tax impact of $1.4 million, or $0.18 per share);
-
a $3.8 million gain on the sale of a cost method investment (after-tax
impact of $2.4 million, or $0.29 per share);
-
a $30.7 million write-down of a marketable equity security (after-tax
impact of $19.8 million, or $2.44 per share); and
-
$2.7 million in non-operating unrealized foreign currency gains
(after-tax impact of $1.7 million, or $0.21 per share).
Excluding these items, the Company’s net income attributable to common
shares was $26.9 million ($3.53 per share) for the first quarter ended
March 31, 2012, compared to net income attributable to common shares
of $32.3 million ($3.99 per share) for the first quarter of last year.
Excluding these items, income from continuing operations attributable to
common shares was $6.7 million ($0.83 per share) for the first quarter
of 2012, compared to income of $35.0 million ($4.33 per share) for the
first quarter of 2011. (Non-GAAP measures are discussed below).
Revenue for the first quarter of 2012 was $972.5 million, down 7% from
$1,041.9 million in the first quarter of 2011. The Company reported
operating income of $17.5 million in the first quarter of 2012, compared
to operating income of $56.6 million in the first quarter of 2011.
Revenues were down at the education and newspaper publishing divisions
and flat at the cable television division, offset by an increase at the
television broadcasting division. Operating results were down at all of
the Company’s divisions, except for the television broadcasting division.
Division Results
Education
Education division revenue totaled $553.4 million for the first quarter
of 2012, an 11% decline from revenue of $618.9 million for the first
quarter of 2011. Excluding revenue from acquired businesses, education
division revenue declined 13% in the first quarter of 2012. Kaplan
reported a first quarter 2012 operating loss of $13.2 million, compared
to operating income of $20.0 million in the first quarter of 2011.
A summary of Kaplan’s first quarter 2012 operating results compared to
2011 is as follows:
|
|
|
|
|
|
|
First Quarter
|
|
(in thousands)
|
|
2012
|
|
2011
|
|
% Change
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Higher education
|
|
$
|
308,384
|
|
|
$
|
386,883
|
|
|
(20
|
)
|
|
Test preparation
|
|
|
62,829
|
|
|
|
73,365
|
|
|
(14
|
)
|
|
Kaplan international
|
|
|
176,385
|
|
|
|
152,135
|
|
|
16
|
|
|
Kaplan ventures
|
|
|
6,121
|
|
|
|
7,215
|
|
|
(15
|
)
|
|
Kaplan corporate
|
|
|
1,157
|
|
|
|
1,117
|
|
|
4
|
|
|
Intersegment elimination
|
|
|
(1,475
|
)
|
|
|
(1,786
|
)
|
|
―
|
|
|
|
|
$
|
553,401
|
|
|
$
|
618,929
|
|
|
(11
|
)
|
|
Operating Income (loss)
|
|
|
|
|
|
|
|
|
|
|
Higher education
|
|
$
|
8,954
|
|
|
$
|
50,650
|
|
|
(82
|
)
|
|
Test preparation
|
|
|
(10,219
|
)
|
|
|
(12,676
|
)
|
|
19
|
|
|
Kaplan international
|
|
|
3,423
|
|
|
|
(682
|
)
|
|
―
|
|
|
Kaplan ventures
|
|
|
(1,261
|
)
|
|
|
(974
|
)
|
|
(29
|
)
|
|
Kaplan corporate
|
|
|
(11,036
|
)
|
|
|
(11,618
|
)
|
|
5
|
|
|
Amortization of intangible assets
|
|
|
(3,243
|
)
|
|
|
(4,420
|
)
|
|
27
|
|
|
Intersegment elimination
|
|
|
194
|
|
|
|
(231
|
)
|
|
―
|
|
|
|
|
$
|
(13,188
|
)
|
|
$
|
20,049
|
|
|
―
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kaplan sold Kaplan Learning Technologies in February 2012 and EduNeering
in April 2012. Consequently, the education division’s operating results
exclude these businesses. Also, Kaplan’s Colloquy and U.S. Pathways
business moved from Kaplan Ventures to Kaplan International. The
comparative division results presented above reflect this change.
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 training and other continuing education businesses. In the
first quarter of 2012, KHE revenue declined 20% due to a decline in
average enrollments, reflecting weaker market demand over the past year.
Operating income decreased 82% due primarily to lower revenue, offset by
expense reductions associated with lower enrollments and recent
restructuring efforts.
Although revenues were down substantially compared to the first quarter
of 2011, new student enrollments at Kaplan University and Kaplan Higher
Education Campuses increased 5% in the first quarter of 2012. Student
enrollments at March 31, 2012 were down 18% compared to March 31, 2011,
but increased 2% compared to December 31, 2011, as follows:
|
|
|
|
|
|
|
Student Enrollments As of
|
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
|
|
2012
|
|
2011
|
|
2011
|
|
Kaplan University
|
|
49,481
|
|
50,190
|
|
61,724
|
|
Kaplan Higher Education Campuses
|
|
26,503
|
|
24,360
|
|
30,569
|
|
|
|
75,984
|
|
74,550
|
|
92,293
|
|
|
|
|
|
|
|
|
Kaplan University enrollments included 5,979, 5,799 and 7,928
campus-based students as of March 31, 2012, December 31, 2011, and March
31, 2011, respectively.
Kaplan University and KHE Campuses enrollments at March 31, 2012, and
March 31, 2011, by degree and certificate programs, are as follows:
|
|
|
|
|
|
|
As of March 31,
|
|
|
|
2012
|
|
|
2011
|
|
Certificate
|
|
25.2
|
%
|
|
|
23.1
|
%
|
|
Associate’s
|
|
29.7
|
%
|
|
|
33.4
|
%
|
|
Bachelor’s
|
|
33.6
|
%
|
|
|
34.2
|
%
|
|
Master’s
|
|
11.5
|
%
|
|
|
9.3
|
%
|
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
Kaplan Test Preparation (KTP) includes Kaplan’s standardized test
preparation and tutoring offerings and other businesses. KTP revenue
declined 14% in the first quarter of 2012. Enrollment increases of 11%,
driven by strength in the medical and bar review programs, were offset
by competitive pricing pressure and a shift in demand to lower priced
online test preparation offerings. Revenues also declined from the prior
year as changes in certain programs and the mix of courses resulted in
an increase in average course length and related revenue recognition
periods. Total sales bookings at KTP during the first quarter of 2012
were down 2% compared to the first quarter of 2011. KTP operating
results reflected lower operating expenses in the first quarter of 2012
due to recent restructuring activities. The first quarter of 2011 also
included $2.3 million in restructuring costs.
Kaplan International includes professional training and postsecondary
education businesses outside the United States and English-language
programs. In May 2011, Kaplan Australia acquired Franklyn Scholar and
Carrick Education Group, national providers of vocational training and
higher education in Australia. In June 2011, Kaplan acquired
Structuralia, a provider of e-learning for the engineering and
infrastructure sector in Spain. Kaplan International revenue increased
16% in 2012. Excluding revenue from acquired businesses, Kaplan
International revenue increased 6% in the first quarter of 2012 due
largely to enrollment growth in the English-language and Singapore
higher education programs. Kaplan International operating income
increased in the first quarter of 2012 due to strong results in
Singapore and the English-language programs, offset by a combined loss
from businesses acquired in 2011.
Most of the businesses previously included in Kaplan Ventures have been
sold or moved to other Kaplan divisions. Kaplan Ventures is exploring
other alternatives with respect to its remaining businesses, including
possible sales.
Corporate represents unallocated expenses of Kaplan, Inc.’s corporate
office and other minor shared activities.
Cable Television
Cable television division revenue for the first quarter of 2012 was
$190.2 million, flat compared to $190.3 million for the first quarter of
2011. The revenue results reflect continued growth of the division’s
internet and telephone service revenues, offset by an increase in
promotional discounts and a decline in basic video subscribers.
Cable television division operating income decreased 13% to $32.8
million, from $37.7 million in the first quarter of 2011. The division’s
operating income declined primarily due to increased programming and
sales costs.
At March 31, 2012, Primary Service Units (PSUs) were up 1% from the
prior year due to growth in high-speed data and telephony subscribers,
offset by a decrease in basic video subscribers. A summary of PSUs is as
follows:
|
|
|
|
|
|
|
|
|
March 31,
|
|
March 31,
|
|
|
|
2012
|
|
2011
|
|
Basic video
|
|
622,339
|
|
647,471
|
|
High-speed data
|
|
463,443
|
|
440,215
|
|
Telephony
|
|
186,009
|
|
166,559
|
|
Total
|
|
1,271,791
|
|
1,254,245
|
|
|
|
|
|
|
Newspaper Publishing
Newspaper publishing division revenue totaled $142.3 million for the
first quarter of 2012, down 8% from revenue of $155.0 million for the
first quarter of 2011. Print advertising revenue at The Washington Post
(the Post) in the first quarter of 2012 declined 17% to $52.7 million,
from $63.2 million in the first quarter of 2011. The decline is largely
due to reductions in general, classified and preprint advertising.
Revenue generated by the Company’s newspaper online publishing
activities, primarily washingtonpost.com and Slate, decreased 7% to
$24.2 million for the first quarter of 2012, versus $26.2 million for
the first quarter of 2011. Display online advertising revenue declined
11% for the first quarter of 2012. Online classified advertising revenue
on washingtonpost.com decreased 1% for the first quarter of 2012.
For the first quarter of 2012, daily and Sunday circulation at the Post
declined 9.8% and 5.2%, respectively, compared to the first quarter of
2011. For the first quarter of 2012, average daily circulation at the
Post totaled 492,600, and average Sunday circulation totaled 714,600.
The newspaper division reported an operating loss of $22.6 million in
the first quarter of 2012, compared to an operating loss of $12.8
million in the first quarter of 2011. These operating losses include
noncash pension expense of $8.6 million and $6.7 million for the first
quarter of 2012 and 2011, respectively. The decline in operating results
is primarily due to the revenue reductions discussed above and $1.9
million in severance and early retirement expenses, offset partially by
a reduction in other operating expenses. Newsprint expense was down 11%
for the first quarter of 2012 compared to the first quarter of 2011, due
to a decline in newsprint consumption.
Television Broadcasting
Revenue for the television broadcasting division increased 13% in the
first quarter of 2012 to $81.5 million, from $72.2 million in 2011;
operating income for the first quarter of 2012 increased 58% to $31.0
million, from $19.6 million in 2011. The increase in revenue and
operating income reflects improved advertising demand across many
product categories, including a $2.2 million increase in political
advertising revenue. Expense reductions from various cost control
initiatives also contributed to the improvement in operating results.
Other Businesses
Other businesses includes the operating results of Avenue100 Media
Solutions, the Company’s digital marketing business that sources leads
for academic institutions and recruiting organizations, and other small
businesses.
Corporate Office
Corporate office includes the expenses of the Company’s corporate office
as well as a net pension credit.
Equity in Earnings of Affiliates, Net
The Company holds a 49% interest in Bowater Mersey Paper Company, a
16.5% interest in Classified Ventures, LLC and interests in several
other affiliates.
The Company’s equity in earnings of affiliates, net, for the first
quarter of 2012 was $3.9 million, compared to $3.7 million for the first
quarter of 2011.
Other Non-Operating Income (Expense)
The Company recorded other non-operating income, net, of $8.6 million
for the first quarter of 2012, compared to other non-operating expense,
net, of $24.0 million for the first quarter of 2011. The first quarter
2012 non-operating income, net, included a $5.8 million gain on sales of
cost method investments, $2.7 million in unrealized foreign currency
gains and other items.
The first quarter 2011 non-operating expense, net, included a $30.7
million write-down of a marketable equity security (Corinthian Colleges,
Inc.), offset by a $3.8 million gain on the sale of a cost method
investment, $2.7 million in unrealized foreign currency gains and other
items.
Net Interest Expense
The Company incurred net interest expense of $8.1 million for the first
quarter of 2012, compared to $7.0 million for the first quarter of 2011.
At March 31, 2012, the Company had $456.4 million in borrowings
outstanding at an average interest rate of 7.0%.
Provision for Income Taxes
The effective tax rate for income from continuing operations for the
first quarter of 2012 was 48.1%, compared to 37.2% for the first quarter
of 2011. The higher effective tax rate in 2012 results primarily from
losses in Australia for which no tax benefit is recorded.
Discontinued Operations
Kaplan sold EduNeering in April 2012, Kaplan Learning Technologies in
February 2012, Kaplan Compliance Solutions in October 2011 and Kaplan
Virtual Education in July 2011. Consequently, the Company’s income from
continuing operations excludes these businesses, which have been
reclassified to discontinued operations, net of tax.
The sale of Kaplan Learning Technologies resulted in a pre-tax loss of
$3.1 million that was recorded in the first quarter of 2012. The sale of
EduNeering resulted in an estimated pre-tax gain of $30 million, which
will be recorded in the second quarter of 2012.
In connection with each of the sales of the Company’s stock in
EduNeering and Kaplan Learning Technologies, in the first quarter of
2012, the Company recorded $23.2 million of income tax benefits related
to the excess of the outside stock tax basis over the net book value of
the net assets disposed.
Earnings (Loss) Per Share
The calculation of diluted earnings per share for the first quarter of
2012 was based on 7,614,623 weighted average shares outstanding,
compared to 8,119,373 for the first quarter of 2011. At March 31, 2012,
there were 7,617,409 shares outstanding and the Company had remaining
authorization from the Board of Directors to purchase up to 493,074
shares of Class B common stock.
Forward-Looking Statements
This report 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.
|
|
|
|
THE WASHINGTON POST COMPANY
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
|
|
|
%
|
|
(in thousands, except per share amounts)
|
|
2012
|
|
2011
|
|
|
Change
|
|
Operating revenues
|
|
$
|
972,476
|
|
|
$
|
1,041,912
|
|
|
|
(7
|
)
|
|
Operating expenses
|
|
|
(888,569
|
)
|
|
|
(917,447
|
)
|
|
|
(3
|
)
|
|
Depreciation of property, plant and equipment
|
|
|
(62,501
|
)
|
|
|
(62,196
|
)
|
|
|
0
|
|
|
Amortization of intangible assets
|
|
|
(3,937
|
)
|
|
|
(5,716
|
)
|
|
|
(31
|
)
|
|
Operating income
|
|
|
17,469
|
|
|
|
56,553
|
|
|
|
(69
|
)
|
|
Equity in earnings of affiliates, net
|
|
|
3,888
|
|
|
|
3,737
|
|
|
|
4
|
|
|
Interest income
|
|
|
1,069
|
|
|
|
982
|
|
|
|
9
|
|
|
Interest expense
|
|
|
(9,163
|
)
|
|
|
(7,961
|
)
|
|
|
15
|
|
|
Other income (expense), net
|
|
|
8,588
|
|
|
|
(24,032
|
)
|
|
|
―
|
|
|
Income from continuing operations before income taxes
|
|
|
21,851
|
|
|
|
29,279
|
|
|
|
(25
|
)
|
|
Provision for income taxes
|
|
|
10,500
|
|
|
|
10,900
|
|
|
|
(4
|
)
|
|
Income from continuing operations
|
|
|
11,351
|
|
|
|
18,379
|
|
|
|
(38
|
)
|
|
Income (loss) from discontinued operations, net of tax
|
|
|
20,217
|
|
|
|
(2,750
|
)
|
|
|
―
|
|
|
Net income
|
|
|
31,568
|
|
|
|
15,629
|
|
|
|
―
|
|
|
Net income attributable to noncontrolling interests
|
|
|
(70
|
)
|
|
|
(14
|
)
|
|
|
―
|
|
|
Net income attributable to The Washington Post Company
|
|
|
31,498
|
|
|
|
15,615
|
|
|
|
―
|
|
|
Redeemable preferred stock dividends
|
|
|
(451
|
)
|
|
|
(461
|
)
|
|
|
(2
|
)
|
|
Net Income Attributable to The Washington Post Company Common
Stockholders
|
|
$
|
31,047
|
|
|
$
|
15,154
|
|
|
|
―
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts Attributable to The Washington Post Company Common
Stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
10,830
|
|
|
$
|
17,904
|
|
|
|
(40
|
)
|
|
Income (loss) from discontinued operations, net of tax
|
|
|
20,217
|
|
|
|
(2,750
|
)
|
|
|
―
|
|
|
Net income
|
|
$
|
31,047
|
|
|
$
|
15,154
|
|
|
|
―
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Information Attributable to The Washington Post
Company Common Stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
Basic income per common share from continuing operations
|
|
$
|
1.37
|
|
|
$
|
2.21
|
|
|
|
(38
|
)
|
|
Basic income (loss) per common share from discontinued operations
|
|
|
2.70
|
|
|
|
(0.34
|
)
|
|
|
―
|
|
|
Basic net income per common share
|
|
$
|
4.07
|
|
|
$
|
1.87
|
|
|
|
―
|
|
|
Basic average number of common shares outstanding
|
|
|
7,514
|
|
|
|
8,046
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income per common share from continuing operations
|
|
$
|
1.37
|
|
|
$
|
2.21
|
|
|
|
(38
|
)
|
|
Diluted income (loss) per common share from discontinued operations
|
|
|
2.70
|
|
|
|
(0.34
|
)
|
|
|
―
|
|
|
Diluted net income per common share
|
|
$
|
4.07
|
|
|
$
|
1.87
|
|
|
|
―
|
|
|
Diluted average number of common shares outstanding
|
|
|
7,615
|
|
|
|
8,119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE WASHINGTON POST COMPANY
|
|
BUSINESS SEGMENT INFORMATION
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
|
|
%
|
|
(in thousands)
|
|
2012
|
|
|
2011
|
|
|
Change
|
|
Operating Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Education
|
|
$
|
553,401
|
|
|
$
|
618,929
|
|
|
(11
|
)
|
|
Cable television
|
|
|
190,210
|
|
|
|
190,280
|
|
|
0
|
|
|
Newspaper publishing
|
|
|
142,321
|
|
|
|
154,997
|
|
|
(8
|
)
|
|
Television broadcasting
|
|
|
81,497
|
|
|
|
72,183
|
|
|
13
|
|
|
Other businesses
|
|
|
6,015
|
|
|
|
6,662
|
|
|
(10
|
)
|
|
Corporate office
|
|
|
―
|
|
|
|
―
|
|
|
―
|
|
|
Intersegment elimination
|
|
|
(968
|
)
|
|
|
(1,139
|
)
|
|
―
|
|
|
|
|
$
|
972,476
|
|
|
$
|
1,041,912
|
|
|
(7
|
)
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Education
|
|
$
|
566,589
|
|
|
$
|
598,880
|
|
|
(5
|
)
|
|
Cable television
|
|
|
157,433
|
|
|
|
152,573
|
|
|
3
|
|
|
Newspaper publishing
|
|
|
164,881
|
|
|
|
167,824
|
|
|
(2
|
)
|
|
Television broadcasting
|
|
|
50,498
|
|
|
|
52,592
|
|
|
(4
|
)
|
|
Other businesses
|
|
|
11,266
|
|
|
|
11,701
|
|
|
(4
|
)
|
|
Corporate office
|
|
|
5,308
|
|
|
|
2,928
|
|
|
81
|
|
|
Intersegment elimination
|
|
|
(968
|
)
|
|
|
(1,139
|
)
|
|
―
|
|
|
|
|
$
|
955,007
|
|
|
$
|
985,359
|
|
|
(3
|
)
|
|
Operating Income (Loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
Education
|
|
$
|
(13,188
|
)
|
|
$
|
20,049
|
|
|
―
|
|
|
Cable television
|
|
|
32,777
|
|
|
|
37,707
|
|
|
(13
|
)
|
|
Newspaper publishing
|
|
|
(22,560
|
)
|
|
|
(12,827
|
)
|
|
(76
|
)
|
|
Television broadcasting
|
|
|
30,999
|
|
|
|
19,591
|
|
|
58
|
|
|
Other businesses
|
|
|
(5,251
|
)
|
|
|
(5,039
|
)
|
|
(4
|
)
|
|
Corporate office
|
|
|
(5,308
|
)
|
|
|
(2,928
|
)
|
|
(81
|
)
|
|
|
|
|
17,469
|
|
|
|
56,553
|
|
|
(69
|
)
|
|
Depreciation:
|
|
|
|
|
|
|
|
|
|
|
|
|
Education
|
|
$
|
20,862
|
|
|
$
|
20,175
|
|
|
3
|
|
|
Cable television
|
|
|
32,197
|
|
|
|
31,786
|
|
|
1
|
|
|
Newspaper publishing
|
|
|
6,236
|
|
|
|
6,900
|
|
|
(10
|
)
|
|
Television broadcasting
|
|
|
3,125
|
|
|
|
3,110
|
|
|
0
|
|
|
Other businesses
|
|
|
81
|
|
|
|
81
|
|
|
―
|
|
|
Corporate office
|
|
|
―
|
|
|
|
144
|
|
|
―
|
|
|
|
|
$
|
62,501
|
|
|
$
|
62,196
|
|
|
0
|
|
|
Amortization of Intangible Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Education
|
|
$
|
3,243
|
|
|
$
|
4,420
|
|
|
(27
|
)
|
|
Cable television
|
|
|
54
|
|
|
|
73
|
|
|
(26
|
)
|
|
Newspaper publishing
|
|
|
183
|
|
|
|
290
|
|
|
(37
|
)
|
|
Television broadcasting
|
|
|
―
|
|
|
|
―
|
|
|
―
|
|
|
Other businesses
|
|
|
457
|
|
|
|
933
|
|
|
(51
|
)
|
|
Corporate office
|
|
|
―
|
|
|
|
―
|
|
|
―
|
|
|
|
|
$
|
3,937
|
|
|
$
|
5,716
|
|
|
(31
|
)
|
|
Pension (Expense) Credit:
|
|
|
|
|
|
|
|
|
|
|
|
|
Education
|
|
$
|
(2,391
|
)
|
|
$
|
(1,552
|
)
|
|
54
|
|
|
Cable television
|
|
|
(530
|
)
|
|
|
(518
|
)
|
|
2
|
|
|
Newspaper publishing
|
|
|
(8,611
|
)
|
|
|
(6,705
|
)
|
|
28
|
|
|
Television broadcasting
|
|
|
(960
|
)
|
|
|
(646
|
)
|
|
49
|
|
|
Other businesses
|
|
|
(19
|
)
|
|
|
(17
|
)
|
|
12
|
|
|
Corporate office
|
|
|
9,298
|
|
|
|
9,297
|
|
|
0
|
|
|
|
|
$
|
(3,213
|
)
|
|
$
|
(141
|
)
|
|
―
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL INFORMATION
|
|
THE WASHINGTON POST 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 and net income excluding certain items
described below reconciled to the most directly comparable GAAP
measures. Management believes 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 and net income
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:
|
|
|
|
|
|
|
|
First Quarter
|
|
(in thousands, except per share amounts)
|
|
2012
|
|
|
2011
|
|
Amounts Attributable to The Washington Post Company Common
Stockholders:
|
|
|
|
|
|
|
|
|
Income from continuing operations, as reported
|
|
$
|
10,830
|
|
|
$
|
17,904
|
|
|
Net income, as reported
|
|
$
|
31,047
|
|
|
$
|
15,154
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Severance and restructuring charges
|
|
|
1,193
|
|
|
|
1,426
|
|
|
Gain on sales of cost method investments
|
|
|
(3,657
|
)
|
|
|
(2,376
|
)
|
|
Marketable equity securities write-down
|
|
|
―
|
|
|
|
19,796
|
|
|
Foreign currency gain
|
|
|
(1,676
|
)
|
|
|
(1,728
|
)
|
|
Income from continuing operations, adjusted (non-GAAP)
|
|
$
|
6,690
|
|
|
$
|
35,022
|
|
|
Net income, adjusted (non-GAAP)
|
|
$
|
26,907
|
|
|
$
|
32,272
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Information Attributable to The Washington Post Company
Common Stockholders:
|
|
|
|
|
|
|
|
|
Diluted income per common share from continuing operations, as
reported
|
|
$
|
1.37
|
|
|
$
|
2.21
|
|
|
Diluted net income per common share, as reported
|
|
$
|
4.07
|
|
|
$
|
1.87
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Severance and restructuring charges
|
|
|
0.16
|
|
|
|
0.18
|
|
|
Gain on sales of cost method investments
|
|
|
(0.48
|
)
|
|
|
(0.29
|
)
|
|
Marketable equity securities write-down
|
|
|
―
|
|
|
|
2.44
|
|
|
Foreign currency gain
|
|
|
(0.22
|
)
|
|
|
(0.21
|
)
|
|
Diluted income per common share from continuing operations, adjusted
(non-GAAP)
|
|
$
|
0.83
|
|
|
$
|
4.33
|
|
|
Diluted net income per common share, adjusted (non-GAAP)
|
|
$
|
3.53
|
|
|
$
|
3.99
|
|
|
|
|
|
|
|
|
|
|
|
The adjusted diluted per share amounts may not compute due to
rounding.
|
|
|
|
|
Source: The Washington Post Company
The Washington Post Company
Hal S. Jones, 202-334-6645
|
