ARLINGTON - Graham Holdings Company (NYSE: GHC) today reported net income attributable to common shares of $67.1 million ($13.79 per share) for the year ended December 31, 2022, compared to $352.1 million ($70.45 per share) for the year ended December 31, 2021.
For the fourth quarter of 2022, the Company reported net income attributable to common shares of $6.2 million ($1.28 per share), compared to $84.7 million ($17.10 per share) for the same period of 2021.
The results for 2022 and 2021 were affected by a number of items as described in the following paragraphs. Excluding these items, net income attributable to common shares was $287.2 million ($59.03 per share) for 2022, compared to $162.6 million ($32.53 per share) for 2021. Excluding these items, net income attributable to common shares was $90.5 million ($18.80 per share) for the fourth quarter of 2022, compared to $41.8 million ($8.44 per share) for the fourth quarter of 2021. (Refer to the Non-GAAP Financial Information schedule attached to this release for additional details.)
Items included in the Company's net income for 2022 are listed below, and fourth quarter activity, if any, is highlighted for each item: a $6.1 million net credit related to fair value changes in contingent consideration from prior acquisitions (after-tax impact of $6.1 million or $1.25 per share); a $1.3 million net credit was recorded in the fourth quarter (after-tax impact of $1.3 million, or $0.27 per share); $129.0 million in goodwill and intangible asset impairment charges (after-tax impact of $117.0 million, or $24.06 per share) at Leaf recorded in the fourth quarter; $3.6 million in expenses related to a non-operating Separation Incentive Program (SIP) at the education division (after-tax impact of $2.7 million, or $0.56 per share) recorded in the fourth quarter; $139.6 million in net losses on marketable equity securities (after-tax impact of $102.8 million, or $21.14 per share); $33.3 million in net gains were recorded in the fourth quarter (after-tax impact of $25.0 million, or $5.20 per share); $11.8 million in net losses of affiliates whose operations are not managed by the Company (after-tax impact of $8.7 million, or $1.79 per share); $9.0 million in net losses were recorded in the fourth quarter (after-tax impact of $6.6 million, or $1.38 per share); a fourth quarter gain of $18.4 million on the sale of CyberVista (after-tax impact of $13.5 million, or $2.78 per share); Non-operating gains, net, of $9.5 million from write-ups, sales and impairments of cost and equity method investments (after-tax impact of $7.1 million, or $1.45 per share); $7.3 million of net gains were recorded in the fourth quarter (after-tax impact of $5.4 million, or $1.12 per share) and $16.5 million in interest expense to adjust the fair value of the mandatorily redeemable noncontrolling interest (after-tax impact of $15.4 million, or $3.17 per share); $3.7 million of interest expense was recorded in the fourth quarter (after-tax impact of $3.2 million, or $0.66 per share).
Forward-Looking Statements
All public statements made by the Company and its representatives that are not statements of historical fact, including certain statements in this press release, in the Company's Annual Report on Form 10-K and in the Company's 2022 Annual Report to Stockholders, are 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to the duration and severity of the COVID-19 pandemic and its effects on the Company's operations, financial results, liquidity and cash flows. Other forward-looking statements include comments about expectations related to acquisitions or dispositions or related business activities, including the TOSA, the Company's business strategies and objectives, anticipated results of license renewal applications, the prospects for growth in the Company's various business operations and the Company's future financial performance. As with any projection or forecast, forward-looking statements are subject to various risks and uncertainties, including the risks and uncertainties described in Item 1A of the Company's Annual Report on Form 10-K, that could cause actual results or events to differ materially from those anticipated in such statements. Accordingly, undue reliance should not be placed on any forward-looking statement made by or on behalf of the Company. The Company assumes no obligation to update any forward-looking statement after the date on which such statement is made, even if new information subsequently becomes available.
Contact:
Wallace R. Cooney
Tel: (703) 345-6470
GRAHAM HOLDINGS COMPANY 
