Washington Post 2008 Annual Report Download - page 98

THE WASHINGTON POST COMPANY
TEN-YEAR SUMMARY OF SELECTED HISTORICAL FINANCIAL DATA
See Notes to consolidated financial statements for the summary of significant accounting policies and additional information relative to the
years 2006–2008. Operating results prior to 2002 include amortization of goodwill and certain other intangible assets that are no longer
amortized under SFAS 142.
(in thousands, except per share amounts) 2008 2007 2006
Results of Operations
Operating revenues .......................................................... $4,461,580 $4,180,406 $3,904,927
Income from operations ....................................................... $ 174,208 $ 477,016 $ 459,805
Income before cumulative effect of change in accounting principle ........................ $ 65,722 $ 288,607 $ 329,534
Cumulative effect of change in method of accounting .................................. —— (5,075)
Net income ................................................................ $ 65,722 $ 288,607 $ 324,459
Per Share Amounts
Basic earnings per common share ................................................
Before cumulative effect of change in accounting principle .............................. $ 6.89 $ 30.31 $ 34.34
Cumulative effect of change in accounting principle ................................... —— (0.53)
Net income available for common shares .......................................... $ 6.89 $ 30.31 $ 33.81
Basic average shares outstanding ................................................ 9,408 9,492 9,568
Diluted earnings per share .......................................................
Before cumulative effect of change in accounting principle .............................. $ 6.87 $ 30.19 $ 34.21
Cumulative effect of change in accounting principle ................................... —— (0.53)
Net income available for common shares .......................................... $ 6.87 $ 30.19 $ 33.68
Diluted average shares outstanding ............................................... 9,430 9,528 9,606
Cash dividends ............................................................. $ 8.60 $ 8.20 $ 7.80
Common shareholders’ equity ................................................... $ 305.12 $ 363.72 $ 331.32
Financial Position
Current assets ............................................................... $1,351,540 $ 994,970 $ 934,825
Working capital ............................................................. 257,292 (18,503) 123,184
Property, plant and equipment ................................................... 1,302,334 1,280,737 1,218,309
Total assets ................................................................ 5,158,434 6,004,509 5,381,372
Long-term debt .............................................................. 400,003 400,519 401,571
Common shareholders’ equity ................................................... 2,857,540 3,461,159 3,159,514
Impact from certain unusual items (after-tax and diluted EPS amounts):
2008
• goodwill, intangible assets and other impairment charges of $115.7 million ($12.35 per share) at the Company’s online lead generation
business, included in other businesses and corporate office segment; at the Company’s community newspapers, The Herald and other
operations included in the newspaper publishing segment; and at two of the Company’s equity affiliates
• charges of $67.2 million ($7.07 per share) related to early retirement program expense at The Washington Post newspaper, the corporate
office and Newsweek
• $13.9 million ($1.48 per share) in accelerated depreciation related to the planned closing of The Washington Post’s College Park, MD,
plant
• charges of $6.8 million ($0.72 per share) in connection with the restructuring of Kaplan Professional (U.S.)
• gains of $28.9 million ($3.09 per share) from the sales of marketable securities
• losses of $28.5 million ($3.04 per share) from non-operating unrealized foreign currency losses on intercompany loans arising from the
strengthening of the U.S. dollar
• charge of $9.5 million ($1.01 per share) in income tax expense related to valuation allowances provided against certain state and local
income tax benefits, net of U.S. Federal income tax benefits
2007
• charge of additional net income tax expense of $6.6 million ($0.70 per share), as the result of a $12.9 million increase in taxes associated
with Bowater Mersey, offset by a tax benefit of $6.3 million associated with changes in certain state income tax laws.
• charges of $10.3 million ($1.08 per share) in connection with the restructuring of Kaplan Professional (U.S.) and Score
• gain of $5.9 million ($0.62 per share) from the sale of property at the Company’s television station in Miami
• gains of $5.5 million ($0.58 per share) from non-operating unrealized foreign currency gains on intercompany loans
2006
• charge of $31.7 million ($3.30 per share) related to early retirement plan buyouts
• charge of $9.0 million ($0.94 per share) from the write-down of a marketable equity security
• charge of $8.3 million ($0.86 per share) related to an agreement to settle a lawsuit at Kaplan
• goodwill impairment charge of $6.3 million ($0.65 per share) at PostNewsweek Tech Media and a loss of $1.0 million ($0.10 per share)
on the sale of PostNewsweek Tech Media
• transition costs and operating losses at Kaplan related to acquisitions and startups for 2006 of $8.0 million ($0.83 per share)
• charge of $5.1 million ($0.53 per share) for the cumulative effect of a change in accounting for Kaplan equity awards in connection with
the Company’s adoption of SFAS 123R
• gain of $27.4 million ($2.86 per share) on the sale of the Company’s 49% interest in BrassRing
• insurance recoveries of $6.4 million ($0.67 per share) from cable division losses related to Hurricane Katrina
• gains of $21.1 million ($2.19 per share) from the sales of marketable equity securities
86 THE WASHINGTON POST COMPANY