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GH GRAHAM HOLDINGS Contact : Wallace R. Cooney ( 703 ) 345-6470 For Immediate Release August 4 , 2021 GRAHAM HOLDINGS COMPANY REPORTS SECOND QUARTER EARNINGS ARLINGTON , VA - Graham Holdings Company ( NYSE : GHC ) today reported net income attributable to common shares of $ 115.4 million ( $ 22.99 per share ) for the second quarter of 2021 , compared to $ 18.9 million ( $ 3.60 per share ) for the second quarter of 2020 . The COVID - 19 pandemic and measures taken to prevent its spread , such as travel restrictions , shelter in place orders and mandatory closures , significantly impacted the Company's results for 2020 and the first six months of 2021 , largely from reduced demand for the Company's products and services . This significant adverse impact is expected to continue for several of the Company's businesses for the remainder of 2021. The Company's management has taken a variety of measures to reduce costs and implement changes to business operations . The Company cannot predict the severity or duration of the pandemic , the extent to which demand for the Company's products and services will be adversely affected or the degree to which financial and operating results will be negatively impacted . On June 14 , 2021 , the Company closed on the previously announced acquisition of all outstanding shares of common stock of Leaf Group Ltd. ( Leaf ) at $ 8.50 per share in an all cash transaction valued at approximately $ 322 million . Leaf Group , headquartered in Santa Monica , CA , is a consumer internet company that builds enduring , creator - driven brands that reach passionate audiences in large and growing lifestyle categories , including fitness and wellness ( Well + Good , Livestrong.com and MyPlate App ) , and home , art and design ( Saatchi Art , Society6 and Hunker ) . The Leaf operating results for the period from June 14 , 2021 to June 30 , 2021 are included in other businesses . The results for the second quarter of 2021 and 2020 were also affected by a number of items as described in the following paragraphs . Including these items , income before income taxes was $ 158.9 million for the second quarter of 2021 , compared to $ 60.8 million for the second quarter of 2020. Excluding these items , income before income taxes was $ 62.3 million for the second quarter of 2021 , compared to $ 43.1 million for the second quarter of 2020 . ( Refer to the Non - GAAP Financial Information schedule at the end of this release for additional details . ) Items included in the Company's income before income taxes for the second quarter of 2021 : • a $ 2.6 million net credit related to a fair value change in contingent consideration from a prior acquisition at Corporate ; • a $ 0.2 million reduction to operating expenses from property , plant and equipment gains in connection with the spectrum repacking mandate of the FCC ; • • $ 3.4 million in long - lived asset impairment charges ; • $ 1.1 million in expenses related to a non - operating Separation Incentive Program at manufacturing ; • • $ 83.7 million in net gains on marketable equity securities ; • $ 1.4 million in net losses of affiliates whose operations are not managed by the Company ; • a net non - operating gain of $ 14.5 million from the sale and write - up of cost method investments ; • • $ 1.0 million in interest income to adjust the fair value of the mandatorily redeemable noncontrolling interest ; and • • $ 0.7 million in non - operating foreign currency gains . -more- 1300 North 17th Street , Suite 1700 , Arlington , VA 22209 | 703 345 6300 | www.ghco.com