Print Page  |  Close Window

Investor Relations

SEC Filings

10-K
GRAHAM HOLDINGS CO filed this Form 10-K on 02/23/2018
Entire Document
 


Other Businesses. A summary of Other Businesses’ operating results for 2017 compared to 2016 is as follows:
  
 
Year Ended December 31
 
%
(in thousands)
 
2017
 
2016
 
Change
Operating Revenues
 
  
 
  
 
  
Manufacturing
 
$
414,193

 
$
241,604

 
71

Healthcare
 
154,202

 
146,962

 
5

SocialCode
 
62,077

 
58,851

 
5

Other
 
34,733

 
26,433

 
31

  
 
$
665,205

 
$
473,850

 
40

Operating Expenses
 
  

 
  

 
  

Manufacturing
 
$
400,178

 
$
228,887

 
75

Healthcare
 
156,771

 
144,163

 
9

SocialCode
 
65,751

 
71,258

 
(8
)
Other
 
65,269

 
51,644

 
26

  
 
$
687,969

 
$
495,952

 
39

Operating Income (Loss)
 
  

 
  

 
  

Manufacturing
 
$
14,015

 
$
12,717

 
10

Healthcare
 
(2,569
)
 
2,799

 

SocialCode
 
(3,674
)
 
(12,407
)
 
70

Other
 
(30,536
)
 
(25,211
)
 
(21
)
  
 
$
(22,764
)
 
$
(22,102
)
 
(3
)
Depreciation
 
 
 
 
 
 
Manufacturing
 
$
9,173

 
$
7,251

 
27

Healthcare
 
4,583

 
2,805

 
63

SocialCode
 
1,004

 
929

 
8

Other
 
1,546

 
1,390

 
11

  
 
$
16,306

 
$
12,375

 
32

Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets
 
 
 
 
 
 
Manufacturing
 
$
31,052

 
$
12,119

 

Healthcare
 
7,905

 
6,701

 
18

SocialCode
 
333

 

 

Other
 

 
1,687

 

  
 
$
39,290

 
$
20,507

 
92

Pension Expense
 
  

 
  

 
  

Manufacturing
 
$
1,011

 
$
86

 

Healthcare
 
665

 

 

SocialCode
 
593

 
541

 
10

Other
 
453

 
491

 
(8
)
  
 
$
2,722

 
$
1,118

 

Manufacturing includes four businesses: Dekko, a manufacturer of electrical workspace solutions, architectural lighting and electrical components and assemblies; Joyce/Dayton Corp., a manufacturer of screw jacks and other linear motion systems; Forney, a supplier of products and systems that control and monitor combustion processes in electric utility and industrial applications; and Hoover Treated Wood Products, Inc., a supplier of pressure impregnated kiln-dried lumber and plywood products for fire retardant and preservative applications that the Company acquired in April 2017. In September 2016, Dekko acquired Electri-Cable Assemblies (ECA), a manufacturer of power, data and electrical solutions for the office furniture industry.
In the second quarter of 2017, the Company recorded a $9.2 million goodwill and other long-lived asset impairment charge at Forney, due to lower than expected revenues resulting from sluggish overall demand for its energy products. Excluding this impairment charge, manufacturing revenues and operating income increased in 2017 due to the Hoover acquisition and growth and improved results at Dekko, including the ECA acquisition, offset by a decline in results at Forney, which included $1.2 million in expense related to a separation incentive program implemented in the third quarter of 2017 that was mostly funded from the assets of the Company’s pension plan.

52