Regulatory and Compliance Risks - Kaplan's international operations have been adversely affected by changes in international regulations and travel restrictions, impacting student enrollments significantly [176]. - In 2022, university preparation programs were primarily delivered in Australia, Singapore, and the U.K., with compliance to complex regulatory environments being crucial for student enrollment [180]. - Regulatory actions in Singapore have led to the cessation of new enrollments for certain diploma programs, adversely affecting Kaplan Singapore's revenues and operating results [184]. - Changes in U.K. tax laws could materially impact Kaplan International's financial results, particularly if it loses its Approved Fee Cap status [185]. - The company faces risks related to compliance with Title IV regulations, which could result in monetary liabilities if violations occur by client institutions [188]. - Kaplan's ability to attract international students is threatened by geopolitical instability and changes in government policies regarding education funding and visa regulations [182]. - The company is subject to extensive regulation in the healthcare industry, which poses risks to its operations and financial performance [171]. - Difficulties in managing foreign operations and compliance with local laws could adversely affect Kaplan's business results [183]. - Kaplan is subject to compliance with the ED's Title IV regulations, which could result in liabilities, sanctions, and fines if not adhered to [189]. - Noncompliance by KNA's client institutions could adversely impact Kaplan's financial results and operations [199]. - Changes in federal regulations or interpretations could require renegotiation of agreements, impacting Kaplan's operations [198]. - Regulatory changes could materially reduce Title IV financial assistance available to students, adversely affecting Kaplan's business and operations [200]. - New regulations effective July 2023 may impact KNA's contracts with client institutions, including Purdue Global, due to restrictions on revenue sharing arrangements [201]. - Compliance reviews and litigation risks could extend to KNA, potentially affecting revenues from Title IV programs [203]. - Legislative changes could significantly reduce funding for Title IV programs, impacting enrollments and tuition revenues for Purdue Global and other institutions [204]. - Increased scrutiny of online education providers may lead to enforcement actions that could adversely affect Kaplan's operations and revenues [205]. Financial Performance and Revenue - Kaplan International reported revenue growth in 2022, driven by increases in Languages and Pathways, despite a decline in Singapore [311]. - The television broadcasting division experienced higher revenues and operating income in 2022, largely due to significant political advertising revenue from the election cycle [312]. - Automotive revenues, operating income, and cash flow grew substantially in 2022 due to three large dealership acquisitions and favorable market conditions [313]. - KHE revenue declined in 2022 due to lower reimbursement costs under the Purdue Global agreement, while operating results remained flat [311]. - Supplemental Education revenues and operating results declined in 2022, primarily due to reduced demand for retail comprehensive test preparation [311]. - The Company recorded a goodwill impairment of $129 million at Leaf in Q4 2022, indicating potential future impairments due to declines in revenue [244]. - Net income attributable to common shares for 2022 was $67.1 million ($13.79 per share), a significant decrease from $352.1 million ($70.45 per share) in 2021 [316]. - Revenue for 2022 was $3,924.5 million, representing a 23% increase from $3,186.0 million in 2021, with all divisions reporting revenue growth [317]. - Operating income for 2022 was $83.9 million, up from $77.4 million in 2021, driven by improvements in education, television broadcasting, manufacturing, and automotive sectors [317]. - Kaplan International revenue increased by 12% in 2022, totaling $816.2 million, with operating income rising to $72.1 million from $33.5 million in 2021 [321]. - Television broadcasting revenue grew by 8% to $535.7 million in 2022, with operating income increasing by 35% to $201.9 million [326]. - Manufacturing revenue increased by 6% in 2022, reaching $486.6 million, although operating income turned to a loss of $16.0 million from a profit of $33.7 million in 2021 [329]. - Healthcare revenue increased by 46% in 2022, reaching $326,000, compared to $223,030 in 2021 [332]. - Operating income for healthcare declined by 43% to $15,265 in 2022 from $26,806 in 2021, primarily due to a $10.5 million pension expense [334]. - The automotive segment's revenue for 2022 was $734,185, significantly up from $327,069 in 2021 [336]. - Other businesses' total revenue increased by 28% in 2022, totaling $416,084, compared to $324,353 in 2021 [338]. Operational Challenges - The COVID-19 pandemic has led to significant losses in Kaplan Languages Group due to travel restrictions and examination cancellations [178]. - The COVID-19 pandemic continued to impact demand for certain services, particularly in Kaplan's international language programs [318]. - The company faces potential liability for intellectual property infringement, which could significantly impact its operations and financial results [215]. - The manufacturing sector is experiencing a competitive labor market, which may hinder the company's ability to meet customer demand efficiently [216]. - Continued nursing staffing shortages may limit the company's ability to meet customer demand and take on new business [222]. - High competition for qualified restaurant staff could adversely impact the company's restaurant business and customer experience [235]. - The concentration of the Company's restaurants in the Washington, D.C. region exposes it to adverse economic conditions, which could lead to decreased customer traffic and lower sales and profits [237]. - The Company has incurred and will continue to incur costs related to compliance with evolving privacy laws, including the GDPR and CCPA, which could lead to significant fines and operational restrictions [247][248]. - The Company relies heavily on information technology systems, and any disruptions or security breaches could significantly disrupt operations and lead to financial losses [245][246]. Debt and Financial Management - The company incurred net interest expense of $51.2 million in 2022, up from $30.5 million in 2021 [350]. - The company's effective tax rate for 2022 was 42.1%, influenced by impairment charges and interest expense adjustments [355]. - The company recorded $139.6 million in net losses on marketable equity securities in 2022, compared to $243.1 million in net gains in 2021 [353]. - The company had $726.4 million in borrowings outstanding at an average interest rate of 5.7% as of December 31, 2022 [351]. - The Company had working capital of $534.1 million at December 31, 2022, down from $680.8 million in 2021, indicating a decrease in liquidity [365]. - The Company maintained an undrawn portion of $99.8 million from its $300 million revolving credit facility as of December 31, 2022 [357]. - The Company purchased $42.1 million of marketable equity securities during 2022 and sold securities generating proceeds of $102.0 million [364]. - The Company deferred $21.5 million of FICA payments under the CARES Act, with $10.7 million still payable at December 31, 2021 [358]. - The Company received $31.5 million under the Medicare Accelerated and Advanced Payment Program, which was fully recouped by December 31, 2022 [359]. - The Company amended its revolving credit facility agreement on May 3, 2022, extending the maturity date to May 30, 2027 [367].

For the Quarterly Period Ended September 30, 2022 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number 001-06714 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 GRAHAM HOLDINGS COMPANY (Exact name of registrant as specified in its charter) Delaware 53-0182885 (State or other jurisdiction of incorporation or organization) 130 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended March 31, 2022 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number 001-06714 GRAHAM HOLDINGS COMPANY (Exact name of registrant as specified in its charter) Delaware 53-0182885 (State or other jurisdiction of incorporation or organization) (703) 3 ...