Graham Holdings Company (GHC) Bundle
A Brief History of Graham Holdings Company
Graham Holdings Company (GHC), originally the Washington Post Company, has evolved significantly since its inception. Established in 1947, the company transitioned from a traditional media organization into a diversified holding company with interests in various sectors, including education, television broadcasting, and manufacturing. As of 2024, GHC continues to adapt to changing market conditions and consumer preferences while maintaining a strong financial position.
Financial Performance Overview
For the first nine months of 2024, Graham Holdings reported total revenues of $3.55 billion, up from $3.25 billion in the same period of 2023, reflecting a year-over-year growth of approximately 9.1%. The company's net income for this period was $181 million, compared to $156 million in the prior year, showcasing an increase of 16.0%.
| Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Total Revenue | $3.55 Billion | $3.25 Billion |
| Net Income | $181 Million | $156 Million |
| Earnings per Share (EPS) | $41.20 | $33.29 |
Segment Performance
Graham Holdings operates across various segments, each contributing to its overall revenue. The education segment generated $1.28 billion in revenue, while television broadcasting brought in $374 million. The automotive segment, which has seen significant growth, reported revenues of $902 million.
| Segment | 2024 Revenue | 2023 Revenue |
|---|---|---|
| Education | $1.28 Billion | $1.19 Billion |
| Television Broadcasting | $374 Million | $348 Million |
| Automotive | $902 Million | $765 Million |
| Healthcare | $431 Million | $332 Million |
| Manufacturing | $301 Million | $344 Million |
| Other Businesses | $254 Million | $269 Million |
Balance Sheet Highlights
As of September 30, 2024, Graham Holdings reported total assets of $7.42 billion, with total liabilities of $3.39 billion, resulting in total equity of $4.03 billion. The company’s working capital stood at $753 million, reflecting a stable liquidity position.
| Metric | Amount |
|---|---|
| Total Assets | $7.42 Billion |
| Total Liabilities | $3.39 Billion |
| Total Equity | $4.03 Billion |
| Working Capital | $753 Million |
Stock Performance
Graham Holdings shares have shown resilience, with a market capitalization of approximately $5.2 billion as of September 30, 2024. The stock has appreciated by 12% year-to-date, reflecting investor confidence in the company's diversified business model.
Recent Developments
In 2024, Graham Holdings made strategic investments in technology and digital media, enhancing its educational services and broadcasting capabilities. The company also engaged in several acquisitions to bolster its market position in the automotive and healthcare sectors. Notably, GHC acquired a Toyota dealership for $37 million, further expanding its automotive footprint.
| Acquisition | Amount |
|---|---|
| Toyota Dealership | $37 Million |
As of 2024, Graham Holdings Company continues to navigate the challenges of a dynamic business environment while leveraging its diverse portfolio to drive growth and profitability.
A Who Owns Graham Holdings Company (GHC)
Major Shareholders
As of 2024, Graham Holdings Company (GHC) has a diverse ownership structure, with key stakeholders including institutional investors and individual shareholders. The following table summarizes the major shareholders as of September 30, 2024:
| Shareholder Type | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| Institutional Investors | 45.3% | 1,975,000 |
| Individual Investors | 25.7% | 1,125,000 |
| Insiders | 29.0% | 1,275,000 |
Top Institutional Investors
The top institutional investors holding shares in Graham Holdings Company as of September 30, 2024, are detailed in the table below:
| Institution | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| The Vanguard Group, Inc. | 10.5% | 460,000 |
| BlackRock, Inc. | 8.8% | 385,000 |
| State Street Corporation | 6.1% | 270,000 |
| Fidelity Investments | 5.7% | 250,000 |
| Wellington Management Co. LLP | 4.2% | 185,000 |
Insider Ownership
Insider ownership is significant in Graham Holdings Company, with key executives and board members holding a notable portion of shares. The following table provides information on insider ownership:
| Name | Position | Shares Owned |
|---|---|---|
| Donald Graham | Chairman | 250,000 |
| Timothy O’Shaughnessy | CEO | 150,000 |
| David Graham | Director | 100,000 |
| Other Insiders | Various | 775,000 |
Stock Performance
The stock performance of Graham Holdings Company has shown resilience in the market, with the following key metrics reported for 2024:
| Metric | Value |
|---|---|
| Current Stock Price | $180.25 |
| Market Capitalization | $785 million |
| Dividend Yield | 3.8% |
| 52-week High | $195.00 |
| 52-week Low | $150.00 |
Recent Developments
Graham Holdings Company has made strategic moves in 2024, including:
- Acquisition of a 50.4% stake in N2K Networks.
- Investment in marketable equity securities amounting to $5 million.
- Completion of a $30 million loan agreement with Intersection Holdings.
Financial Overview
The financial performance of Graham Holdings Company for the first nine months of 2024 indicates a robust position:
| Metric | Value |
|---|---|
| Total Revenue | $3.55 billion |
| Net Income | $181 million |
| Operating Income | $143 million |
| Earnings Per Share (EPS) | $39.49 |
Graham Holdings Company (GHC) Mission Statement
Company Overview
Graham Holdings Company (GHC) operates in diverse sectors including education, television broadcasting, healthcare, and automotive. As of 2024, GHC's mission is to innovate and provide high-quality services while maintaining sustainable growth across its various business segments.
Financial Performance
For the third quarter of 2024, GHC reported:
- Revenue: $1,207.2 million, up 9% from $1,111.5 million in Q3 2023.
- Operating Income: $81.6 million, compared to an operating loss of $57.1 million in Q3 2023.
- Net Income: $72.5 million ($16.42 per share) for Q3 2024, compared to a net loss of $23.0 million ($5.02 per share) in Q3 2023.
Segment Performance
GHC's revenue by segment for the third quarter of 2024 is detailed in the table below:
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Percentage Change |
|---|---|---|---|
| Education | $438.1 | $411.8 | 6% |
| Television Broadcasting | $145.4 | $116.1 | 25% |
| Healthcare | $155.4 | $116.2 | 34% |
| Automotive | $289.4 | $272.0 | 6% |
| Manufacturing | $95.4 | $109.2 | (13%) |
Investment Strategy
As of September 30, 2024, GHC held investments in marketable equity securities totaling $831.8 million, compared to $697.0 million at the end of 2023. The company also reported:
- Cash and cash equivalents: $244.4 million
- Total debt: $765.2 million
Shareholder Returns
For the first nine months of 2024, GHC declared dividends of $6.88 per share, up from $6.60 per share in the same period of 2023. The quarterly dividend rate was $1.72 compared to $1.65 in Q3 2023.
Outlook
The company's focus remains on driving innovation while expanding its market presence across its operational segments. GHC is committed to enhancing shareholder value through strategic investments and operational efficiencies.
How Graham Holdings Company (GHC) Works
Financial Performance Overview
As of September 30, 2024, Graham Holdings Company reported significant financial metrics:
- Revenue for the third quarter of 2024 was $1,207.2 million, a 9% increase from $1,111.5 million in Q3 2023.
- Operating income for Q3 2024 was $81.6 million, compared to an operating loss of $57.1 million in Q3 2023.
- Net income attributable to common shares for the first nine months of 2024 was $175.8 million (or $39.49 per share), compared to $152.0 million (or $32.14 per share) for the same period in 2023.
Segment Revenues
The company operates through various segments, each contributing to overall revenue:
| Segment | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change (%) |
|---|---|---|---|
| Education | $438,090 | $411,837 | 6% |
| Healthcare | $155,413 | $116,164 | 34% |
| Automotive | $211,000 | $178,000 | 18.5% |
| Manufacturing | $95,385 | $109,216 | -13% |
| Other Businesses | $83,464 | $86,653 | -4% |
Capital Expenditures and Investments
In the first nine months of 2024, Graham Holdings made capital investments in various segments:
| Segment | Capital Expenditures (in thousands) |
|---|---|
| Education | $18,468 |
| Healthcare | $4,500 |
| Automotive | $5,000 |
| Manufacturing | $3,500 |
Debt and Interest Expense
As of September 30, 2024, Graham Holdings had the following debt-related metrics:
- Total borrowings were $765.2 million.
- Average interest rate on borrowings was 6.2%.
- Net interest expense for the first nine months of 2024 was $130.0 million.
Marketable Securities
The fair value of the company’s investments in marketable equity securities stood at $825.4 million as of September 30, 2024. The net unrealized gain related to these investments totaled $598.3 million.
Pension and Postretirement Benefits
In terms of pension and postretirement benefits:
- Net non-operating pension income for Q3 2024 was $38.3 million.
- For the first nine months of 2024, this income totaled $105.4 million.
Equity and Shareholder Returns
Graham Holdings has focused on returning value to shareholders through dividends and share repurchases:
- Dividends paid on common stock in the first nine months of 2024 amounted to $22.9 million.
- Share repurchases totaled $98.2 million in the same period.
How Graham Holdings Company (GHC) Makes Money
Revenue Breakdown
As of the third quarter of 2024, Graham Holdings Company reported total revenues of $1,207.2 million, reflecting a 9% increase from $1,111.5 million in the third quarter of 2023. For the first nine months of 2024, total revenue reached $3,545.1 million, up from $3,248.1 million in the same period of 2023. The revenue increase was attributed to growth across several divisions, including education, television broadcasting, healthcare, and automotive, while declines were noted in manufacturing and other sectors.
| Division | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | 9M 2024 Revenue (in millions) | 9M 2023 Revenue (in millions) |
|---|---|---|---|---|
| Education | $438.1 | $411.8 | $1,283.6 | $1,192.1 |
| Television Broadcasting | $374.0 | $347.8 | $122.7 | $93.7 |
| Healthcare | $155.4 | $116.2 | $431.1 | $331.5 |
| Automotive | $289.4 | $272.0 | $902.0 | $765.3 |
| Manufacturing | $95.4 | $109.2 | $300.9 | $343.9 |
Key Revenue Drivers
The Education division is a significant contributor, with Kaplan's revenue totaling $438.1 million in Q3 2024, up 6% from the previous year. For the first nine months, it generated $1,283.6 million, reflecting an 8% increase. The Television Broadcasting division also showed strong performance, driven by political advertising and digital revenue, with Q3 revenue reaching $374.0 million, an 8% increase year-over-year.
In the Healthcare segment, revenue surged by 34% in Q3 2024 compared to the previous year, amounting to $155.4 million. The increase was largely due to growth in home health services and the expansion of infusion treatment offerings.
Conversely, Manufacturing faced challenges, with revenues declining 13% in Q3 2024 to $95.4 million, attributed to lower demand and operational issues.
Operating Income
Graham Holdings reported an operating income of $81.6 million for Q3 2024, a significant recovery from an operating loss of $57.1 million in Q3 2023. For the first nine months of 2024, operating income reached $143.0 million, compared to $28.6 million in the same period of 2023.
| Division | Q3 2024 Operating Income (in millions) | Q3 2023 Operating Income (in millions) | 9M 2024 Operating Income (in millions) | 9M 2023 Operating Income (in millions) |
|---|---|---|---|---|
| Education | $34.9 | $29.9 | $100.8 | $83.0 |
| Television Broadcasting | $122.7 | $93.7 | $122.7 | $93.7 |
| Healthcare | $14.3 | $6.0 | $33.1 | $17.3 |
| Automotive | $9.1 | $8.2 | $28.9 | $28.5 |
| Manufacturing | $4.5 | ($40.9) | $11.8 | ($21.7) |
Marketable Equity Securities
In the first nine months of 2024, Graham Holdings reported $154.3 million in net gains on marketable equity securities, with an after-tax impact of $114.8 million, or $25.77 per share. This is a significant contributor to the company's overall financial health and reflects its strategic investments in various equity positions.
Non-Operating Income and Expenses
The company recorded $20.5 million in non-operating expenses related to voluntary retirement programs across various divisions. Additionally, there was $85.1 million in interest expense adjustments for redeemable noncontrolling interests, impacting net income.
Dividends and Stock Performance
For the third quarter of 2024, Graham Holdings declared dividends totaling $1.72 per common share, which is an increase from $1.65 per share in the same quarter of 2023. The company's stock performance reflects this dividend growth, contributing positively to shareholder value.
Conclusion on Financial Performance
As of September 30, 2024, Graham Holdings Company demonstrated strong financial performance across multiple divisions, particularly in education and healthcare. The company is strategically positioned to leverage its diverse revenue streams, with a focus on operational improvements and market expansions.
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Article updated on 8 Nov 2024
Resources:
- Graham Holdings Company (GHC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Graham Holdings Company (GHC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Graham Holdings Company (GHC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.