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The Washington Post Company Reports Third Quarter Earnings

  The Washington Post Company Reports Third Quarter Earnings

Business Wire

WASHINGTON -- November 1, 2013

The Washington Post Company (NYSE: WPO) today reported income from continuing
operations attributable to common shares of $56.0 million ($7.53 per share)
for the third quarter of 2013, compared to $56.3 million ($7.58 per share) for
the third quarter of 2012. Net income attributable to common shares was $30.1
million ($4.05 per share) for the third quarter ended September 30, 2013,
compared to $93.8 million ($12.64 per share) for the third quarter of last
year. Net income includes $25.9 million ($3.48 per share) in losses and $37.5
million ($5.06 per share) in income from discontinued operations for the third
quarter of 2013 and 2012, respectively (refer to “Discontinued Operations”
discussion below).

On October 1, 2013, the Company completed the sale of most of its newspaper
publishing businesses, including The Washington Post. Consequently, the
Company's income from continuing operations for the third quarter and
year-to-date periods excludes these sold businesses, which have been
reclassified to discontinued operations for all periods presented.

The results for the third quarter of 2013 and 2012 were affected by a number
of items as described in the following paragraphs. Excluding these items,
income from continuing operations attributable to common shares was $54.0
million ($7.26 per share) for the third  quarter of 2013, compared to $57.0
million ($7.69 per share) for the third quarter of 2012. (Refer to the
Non-GAAP Financial Information schedule at the end of this release for
additional details.)

Items included in the Company’s income from continuing operations for the
third quarter of 2013:

  *$4.0 million in severance and restructuring charges at the education
    division (after-tax impact of $3.1 million, or $0.42 per share); and
  *$7.9 million in non-operating unrealized foreign currency gains (after-tax
    impact of $5.0 million, or $0.69 per share).

Items included in the Company’s income from continuing operations for the
third quarter of 2012:

  *$4.3 million in severance and restructuring charges at the education
    division (after-tax impact of $2.7 million, or $0.37 per share); and
  *$3.1 million in non-operating unrealized foreign currency gains (after-tax
    impact of $1.9 million, or $0.26 per share).

Revenue for the third quarter of 2013 was $902.5 million, up 3% from $877.6
million in the third quarter of 2012. The Company reported operating income of
$81.9 million in the third quarter of 2013, compared to operating income of
$93.2 million in the third quarter of 2012. Revenues increased at the cable
television division and in other businesses, offset by declines at the
television broadcasting and education divisions. Operating results declined at
the television broadcasting division and declined very slightly at the cable
television division, offset by improved results at the education division.

For the first nine months of 2013, the Company reported income from continuing
operations attributable to common shares of $134.3 million ($18.07 per share),
compared to $122.1 million ($16.17 per share) for the first nine months of
2012. Net income attributable to common shares was $79.5 million ($10.70 per
share) for the first nine months of 2013, compared to $176.7 million ($23.39
per share) for the same period of 2012. Net income includes $54.7 million
($7.37 per share) in losses and $54.5 million ($7.22 per share) in income from
discontinued operations for the first nine months of 2013 and 2012,
respectively (refer to “Discontinued Operations” discussion below). As a
result of the Company’s share repurchases, there were 3% fewer diluted average
shares outstanding in the first nine months of 2013.

The results for the first nine months of 2013 and 2012 were affected by a
number of significant items as described in the following paragraphs.
Excluding these items, income from continuing operations attributable to
common shares was $153.3 million ($20.69 per share) for the first nine months
of 2013, compared to $122.3 million ($16.20 per share) for the first nine
months of 2012. (Refer to the Non-GAAP Financial Information schedule at the
end of this release for additional details.)

Items included in the Company’s income from continuing operations for the
first nine months of 2013:

  *$18.3 million in severance and restructuring charges at the education
    division (after-tax impact of $13.1 million, or $1.79 per share); and
  *$9.4 million in non-operating unrealized foreign currency losses
    (after-tax impact of $6.0 million, or $0.83 per share).

Items included in the Company’s income from continuing operations for the
first nine months of 2012:

  *$9.3 million in severance and restructuring charges at the education
    division (after-tax impact of $5.8 million, or $0.78 per share);
  *a $5.8 million gain on the sale of a cost method investment (after-tax
    impact of $3.7 million, or $0.48 per share); and
  *$3.2 million in non-operating unrealized foreign currency gains (after-tax
    impact of $2.0 million, or $0.27 per share).

Revenue for the first nine months of 2013 was $2,628.9 million, up 3% from
$2,559.7 million in the first nine months of 2012. Revenues increased at the
cable television division and in other businesses, offset by declines at the
television broadcasting and education divisions. The Company reported
operating income of $240.0 million for the first nine months of 2013, compared
to $202.1 million for the first nine months of 2012. Operating results
improved at the education and cable television divisions, offset by a decline
at the television broadcasting division.

Division Results

Education

Education division revenue totaled $546.5 million for the third quarter of
2013, a 1% decline from revenue of $551.7 million for the third quarter of
2012. Kaplan reported third quarter 2013 operating income of $17.0 million,
compared to $14.7 million in the third quarter of 2012.

For the first nine months of 2013, education division revenue totaled $1,622.5
million, a 2% decline from revenue of $1,650.2 million for the same period of
2012. Kaplan reported operating income of $36.7 million for the first nine
months of 2013, compared to operating income of $6.5 million for the first
nine months of 2012.

In response to student demand levels, Kaplan has formulated and implemented
restructuring plans at its various businesses, with the objective of
establishing lower cost levels in future periods. Across all businesses,
restructuring costs totaled $4.0 million and $18.3 million in the third
quarter and first nine months of 2013, respectively, compared to $4.3 million
and $9.3 million in the third quarter and first nine months of 2012,
respectively. In conjunction with completing these restructuring plans at
Kaplan Higher Education (KHE) and Kaplan International, Kaplan currently plans
to incur approximately $5.0 million in additional restructuring costs for the
remainder of 2013. Kaplan may also incur additional restructuring charges in
2013 as Kaplan management continues to evaluate its cost structure.

A summary of Kaplan’s operating results for the third quarter and the first
nine months of 2013 compared to 2012 is as follows:

                                                                               
                  Three Months Ended                   Nine Months Ended September
                  September 30,                        30,
(in thousands)   2013        2012        %       2013          2012          %      
                                              Change                                   Change
Revenue
  Higher          $ 266,061     $ 273,703     (3  )    $ 811,013       $ 872,948       (7     )
  education
  Test              77,431        81,151      (5  )      232,064         223,767       4
  preparation
  Kaplan            201,305       194,158     4          574,086         546,862       5
  international
  Kaplan
  corporate and     2,223         3,809       (42 )      6,496           10,283        (37    )
  other
  Intersegment     (568    )   (1,125  )   ―         (1,162    )   (3,705    )   ―
  elimination
                  $ 546,452   $ 551,696    (1  )    $ 1,622,497   $ 1,650,155    (2     )
Operating
Income (Loss)
  Higher          $ 14,719      $ 1,510       ―        $ 42,354        $ 16,329        ―
  education
  Test              3,820         3,446       11         7,306           (4,067    )   ―
  preparation
  Kaplan            12,020        20,365      (41 )      24,907          34,293        (27    )
  international
  Kaplan
  corporate and     (13,680 )     (10,852 )   (26 )      (38,243   )     (40,628   )   6
  other
  Intersegment     156        224        ―         381          579          ―
  elimination
                  $ 17,035    $ 14,693     16       $ 36,705      $ 6,506        ―
                                                                                       

KHE includes Kaplan’s domestic postsecondary education businesses, made up of
fixed-facility colleges and online postsecondary and career programs. KHE also
includes the domestic professional training and other continuing education
businesses.

In 2012, KHE began implementing plans to close or merge 13 ground campuses,
consolidate other facilities and reduce its workforce. In connection with
these and other plans, KHE incurred $2.5 million and $14.1 million in total
restructuring costs in the third quarter and first nine months of 2013,
respectively, compared to $2.7 million and $6.5 million in severance and
restructuring costs for the third quarter and first nine months of 2012,
respectively. For the third quarter of 2013, these costs included accelerated
depreciation ($0.8 million), severance ($1.6 million) and lease obligation
losses ($0.1 million). For the first nine months of 2013, these costs included
accelerated depreciation ($5.8 million), severance ($3.0 million), lease
obligation losses ($4.4 million) and other items ($0.9 million). In the first
nine months of 2013, ten KHE campuses were closed. For the third quarter and
first nine months of 2012, restructuring costs were mostly severance, but also
included $0.6 million in accelerated depreciation.

In the third quarter and first nine months of 2013, higher education revenue
declined 3% and 7%, respectively, due largely to declines in average
enrollments that reflect weaker market demand over the past year and the
impact of campuses in the process of closing.

KHE operating income increased significantly in the third quarter and first
nine months of 2013, due largely to expense reductions associated with lower
enrollments and recent restructuring efforts.

New student enrollments at KHE declined 7% and 1% in the third quarter and
first nine months of 2013, respectively. New student enrollments were down due
to the impact of closed campuses and those planned for closure that are no
longer recruiting students, offset by the positive impact of trial period
modifications and process improvements.

Total students at September 30, 2013, were down 11% compared to September 30,
2012, but increased 5% compared to June 30, 2013. Excluding campuses closed or
planned for closure, total students at September 30, 2013, were down 7%
compared to September 30, 2012, but up 5% compared to June 30, 2013. A summary
of student enrollments is as follows:

                             
                               Students as of
                               September 30,  June 30,  September 30,
                             2013           2013      2012
Kaplan University              46,340          43,601     49,132
Other Campuses                 18,818         18,591    24,129
                               65,158         62,192    73,261
                                                          
                               Students as of
                               September 30,   June 30,   September 30,
(excluding campuses closing)  2013           2013      2012
Kaplan University              46,340          43,601     49,132
Other Campuses                 18,619         18,181    21,066
                               64,959         61,782    70,198
                                                          

Kaplan University and Other Campuses’ enrollments at September 30, 2013 and
2012, by degree and certificate programs, are as follows:

             As of September 30,
            2013       2012
Certificate   21.3   %   23.6  %
Associate’s   30.8   %    30.7  %
Bachelor’s    32.6   %    32.7  %
Master’s      15.3   %   13.0  %
              100.0  %   100.0 %
                                

Kaplan Test Preparation (KTP) includes Kaplan’s standardized test preparation
programs. KTP revenue declined 5% for the third quarter of 2013, but increased
4% for the first nine months of 2013. Enrollment declined 8% and 2% for the
third quarter and first nine months of 2013, respectively, due to declines in
graduate programs, offset by growth in nursing and bar review programs. KTP
operating results improved in the first nine months of 2013 due largely to
increased revenues.

Kaplan International includes English-language programs and postsecondary
education and professional training businesses outside the United States.
Kaplan International revenue increased 4% and 5% in the third quarter and
first nine months of 2013, respectively, due to enrollment growth in the
pathways, English-language and Singapore higher education programs. Kaplan
International operating income declined in the third quarter of 2013 due to
reduced earnings in professional training, and increased investment to support
growth in English-language and Singapore higher education programs. For the
first nine months of 2013, operating income declined due to reduced earnings
in professional training, and increased investment to support growth in
English-language programs, offset by better results in Singapore. The results
in Australia included restructuring costs of $1.5 million and $4.1 million for
the third quarter and first nine months of 2013, respectively, compared to
$1.0 million in the third quarter and first nine months of 2012. In the third
quarter and first nine months of 2012, respectively, Kaplan International
results benefited from a $2.0 million and $3.9 million favorable adjustment to
certain items recorded in prior periods.

Corporate represents unallocated expenses of Kaplan, Inc.’s corporate office,
other minor businesses and certain shared activities.

Cable Television

Cable television division revenue increased 1% in the third quarter of 2013 to
$202.4 million, from $199.6 million for the third quarter of 2012; for the
first nine months of 2013, revenue increased 4% to $607.1 million, from $585.4
million in the same period of 2012. The revenue increase for the first nine
months of 2013 is due to recent rate increases for many subscribers, growth in
commercial sales and a reduction in promotional discounts. The increase was
partially offset by a decline in basic video subscribers, as the cable
division focuses its efforts on churn reduction and retention of its
high-value subscribers.

Cable television division operating income declined slightly in the third
quarter of 2013 to $39.7 million, from $39.9 million in the third quarter of
2012; for the first nine months of 2013, operating income increased 9% to
$121.0 million, from $111.1 million for the first nine months of 2012. The
division’s operating income improved in the first nine months of 2013 due to
increased revenues, partially offset by higher programming and depreciation
costs.

At September 30, 2013, Primary Service Units (PSUs) were down 3% from the
prior year due to a decline in basic video subscribers. A summary of PSUs is
as follows:

                As of September 30,
               2013       2012
Basic video       561,119    605,057
High-speed data   469,296     462,808
Telephony         182,643    185,647
                  1,213,058  1,253,512
                              

Television Broadcasting

Revenue at the television broadcasting division declined 18% to $87.1 million
in the third quarter of 2013, from $106.4 million in the same period of 2012;
operating income for the third quarter of 2013 was down 33% to $36.3 million,
from $54.1 million in the same period of 2012. For the first nine months of
2013, revenue declined 4% to $271.7 million, from $283.5 million in the same
period of 2012; operating income for the first nine months of 2013 was down 7%
to $119.4 million, from $128.8 million in the same period of 2012.

The decline in revenue and operating income is due to a $15.9 million and
$24.1 million decrease in political advertising revenue in the third quarter
and first nine months of 2013, respectively, and $10.8 million in incremental
summer Olympics-related advertising at the Company’s NBC affiliates in the
third quarter of 2012. The decline in revenue and operating income was
partially offset by incremental advertising revenue from the NBA finals
broadcast at the division’s ABC affiliates in Miami and San Antonio, and
increased retransmission revenues.

Other Businesses

Other businesses includes the operating results of Social Code, a marketing
solutions provider helping companies with marketing on social media platforms;
Celtic Healthcare, a provider of home health care and hospice services in the
northeastern and mid-Atlantic regions, acquired by the Company in November
2012; Forney, a global supplier of products and systems that control and
monitor combustion processes in electric utility and industrial applications,
acquired by the Company in August 2013; and WaPo Labs, a digital team focused
on emerging technologies and new product development. Also included are the
Slate Group and the FP Group, previously included as part of the Company’s
newspaper publishing division.

The revenue increase in other businesses for the first nine months of 2013 is
primarily due to growth at Social Code and Slate, and revenue from the
Company’s recently acquired Celtic Healthcare and Forney businesses.

Corporate Office

Corporate office includes the expenses of the Company’s corporate office as
well as a net pension credit.

Equity in Earnings (Losses) of Affiliates

The Company holds a 16.5% interest in Classified Ventures, LLC and interests
in several other affiliates.

The Company’s equity in earnings of affiliates, net, was $5.9 million for the
third quarter of 2013, compared to $4.1 million for the third quarter of 2012.
For the first nine months of 2013, the Company’s equity in earnings of
affiliates, net, totaled $13.2 million, compared to $11.3 million for the same
period of 2012.

Other Non-Operating Income (Expense)

The Company recorded other non-operating income, net, of $8.1 million for the
third quarter of 2013, compared to $4.2 million for the third quarter of 2012.
The third quarter 2013 non-operating income, net, included $7.9 million in
unrealized foreign currency gains and other items. The third quarter 2012
non-operating income, net, included $3.1 million in unrealized foreign
currency gains and other items.

The Company recorded non-operating expense, net, of $8.8 million for the first
nine months of 2013, compared to other non-operating income, net, of $12.1
million for the same period of the prior year. The 2013 non-operating expense,
net, included $9.4 million in unrealized foreign currency losses, offset by
other items. The 2012 non-operating income, net, included a $7.3 million gain
on sales of cost method investments, $3.2 million in unrealized foreign
currency gains and other items.

Net Interest Expense

The Company incurred net interest expense of $8.6 million and $25.6 million
for the third quarter and first nine months of 2013, respectively, compared to
$8.1 million and $24.4 million for the same periods of 2012. At September 30,
2013, the Company had $451.1 million in borrowings outstanding, at an average
interest rate of 7.0%.

Provision for Income Taxes

The effective tax rate for income from continuing operations for the first
nine months of 2013 was 38.1%, compared to 38.8% for the first nine months of
2012.

Discontinued Operations

On August 5, 2013, the Company announced that it had entered into an agreement
to sell its Publishing Subsidiaries that together conducted most of the
Company’s publishing businesses and related services, including publishing The
Washington Post, Express, The Gazette Newspapers, Southern Maryland
Newspapers, Fairfax County Times and El Tiempo Latino and related websites.
Slate magazine, TheRoot.com and Foreign Policy are not part of the transaction
and remain with The Washington Post Company, as do the WaPo Labs and
SocialCode businesses, the Company’s interest in Classified Ventures and
certain real estate assets, including the headquarters building in downtown
Washington, DC. On October 1, 2013, the Company completed the sale.
Consequently, the Company’s income from continuing operations excludes these
sold businesses, which have been reclassified to discontinued operations, net
of tax, for all periods presented.

The Purchaser acquired all the issued and outstanding equity securities of the
Publishing Subsidiaries for $250 million, subject to customary adjustments for
cash, debt and working capital at closing. The Company will not record the
gain on the sale until the fourth quarter of 2013; however, the Company
recognized $28.4 million (after-tax impact of $18.3 million) in expenses
related to the sale that are included in discontinued operations in the third
quarter of 2013. These costs include the net impact of accelerated vesting
provisions and forfeitures of restricted stock awards and stock options that
were made in contemplation of the sale, and certain other transaction-related
expenses. Also included in discontinued operations is $22.7 million (after-tax
basis of $14.5 million) in early retirement program expense for the first nine
months of 2013, and $7.5 million (after-tax basis of $4.6 million) and $8.5
million (after-tax basis of $5.3 million) for the third quarter and first nine
months of 2012, respectively.

In March 2013, the Company sold The Herald. Kaplan sold Kidum in August 2012,
EduNeering in April 2012 and Kaplan Learning Technologies (KLT) in February
2012. The Company divested its interest in Avenue100 Media Solutions in July
2012. Consequently, the Company’s income from continuing operations also
excludes the operating results and related net gains on disposition of these
businesses, which have been reclassified to discontinued operations, net of
tax.

Earnings (Loss) Per Share

The calculation of diluted earnings per share for the third quarter and first
nine months of 2013 was based on 7,336,752 and 7,315,971 weighted average
shares outstanding, respectively, compared to 7,376,255 and 7,507,946,
respectively, for the third quarter and first nine months of 2012. At
September 30, 2013, there were 7,423,913 shares outstanding and the Company
had remaining authorization from the Board of Directors to purchase up to
180,993 shares of Class B common stock.

Forward-Looking Statements

This report contains certain forward-looking statements that are based largely
on the Company’s current expectations. Forward-looking statements are subject
to certain risks and uncertainties that could cause actual results and
achievements to differ materially from those expressed in the forward-looking
statements. For more information about these forward-looking statements and
related risks, please refer to the section titled “Forward-Looking Statements”
in Part I of the Company’s Annual Report on Form 10-K.


THE WASHINGTON POST COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
                                                                   
                                        Three Months Ended
                                        September 30,                   %
(in thousands, except per share        2013         2012          Change
amounts)
Operating revenues                      $ 902,479      $ 877,637        3
Operating expenses                        (762,136 )     (721,723 )     6
Depreciation of property, plant and       (55,633  )     (57,588  )     (3   )
equipment
Amortization of intangible assets        (2,837   )   (5,090   )     (44  )
Operating income                          81,873         93,236         (12  )
Equity in earnings of affiliates, net     5,892          4,099          44
Interest income                           642            648            (1   )
Interest expense                          (9,221   )     (8,738   )     6
Other income, net                        8,110       4,163         95
Income from continuing operations         87,296         93,408         (7   )
before income taxes
Provision for income taxes               31,000      37,000        (16  )
Income from continuing operations         56,296         56,408         0
(Loss) income from discontinued          (25,872  )   37,539        ―
operations, net of tax
Net income                                30,424         93,947         (68  )
Net (income) loss attributable to        (75      )   71            ―
noncontrolling interests
Net income attributable to The            30,349         94,018         (68  )
Washington Post Company
Redeemable preferred stock dividends     (205     )   (222     )     (8   )
Net Income Attributable to The
Washington Post Company
Common Stockholders                     $ 30,144     $ 93,796        (68  )
                                                                        
Amounts Attributable to The
Washington Post Company
Common Stockholders
Income from continuing operations       $ 56,016       $ 56,257         0
(Loss) income from discontinued          (25,872  )   37,539        ―
operations, net of tax
Net income                              $ 30,144     $ 93,796        (68  )
                                                                        
Per Share Information Attributable to
The Washington Post Company
Common Stockholders
Basic income per common share from      $ 7.55         $ 7.58           0
continuing operations
Basic (loss) income per common share     (3.48    )   5.06          ―
from discontinued operations
Basic net income per common share       $ 4.07       $ 12.64         (68  )
Basic average number of common shares    7,231       7,272    
outstanding
                                                                        
Diluted income per common share from    $ 7.53         $ 7.58           0
continuing operations
Diluted (loss) income per common         (3.48    )   5.06          ―
share from discontinued operations
Diluted net income per common share     $ 4.05       $ 12.64         (68  )
Diluted average number of common         7,337       7,376    
shares outstanding
                                                                        


THE WASHINGTON POST COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
                                                                   
                                    Nine Months Ended
                                    September 30,                       %
(in thousands, except per share    2013           2012            Change
amounts)
Operating revenues                  $ 2,628,915      $ 2,559,679        3
Operating expenses                    (2,205,663 )     (2,173,891 )     1
Depreciation of property, plant       (173,344   )     (170,347   )     2
and equipment
Amortization of intangible assets    (9,867     )   (13,336    )     (26  )
Operating income                      240,041          202,105          19
Equity in earnings of affiliates,     13,178           11,301           17
net
Interest income                       1,674            2,492            (33  )
Interest expense                      (27,229    )     (26,880    )     1
Other (expense) income, net          (8,831     )   12,116          ―
Income from continuing operations     218,833          201,134          9
before income taxes
Provision for income taxes           83,300        78,100          7
Income from continuing operations     135,533          123,034          10
(Loss) income from discontinued      (54,716    )   54,528          ―
operations, net of tax
Net income                            80,817           177,562          (54  )
Net income attributable to           (425       )   (10        )     ―
noncontrolling interests
Net income attributable to The        80,392           177,552          (55  )
Washington Post Company
Redeemable preferred stock           (855       )   (895       )     (4   )
dividends
Net Income Attributable to The
Washington Post Company
Common Stockholders                 $ 79,537       $ 176,657         (55  )
                                                                        
Amounts Attributable to The
Washington Post Company
Common Stockholders
Income from continuing operations   $ 134,253        $ 122,129          10
(Loss) income from discontinued      (54,716    )   54,528          ―
operations, net of tax
Net income                          $ 79,537       $ 176,657         (55  )
                                                                        
Per Share Information
Attributable to The Washington
Post Company
Common Stockholders
Basic income per common share       $ 18.09          $ 16.17            12
from continuing operations
Basic (loss) income per common
share from discontinued              (7.37      )   7.22            ―
operations
Basic net income per common share   $ 10.72        $ 23.39           (54  )
Basic average number of common       7,229         7,405      
shares outstanding
                                                                        
Diluted income per common share     $ 18.07          $ 16.17            12
from continuing operations
Diluted (loss) income per common
share from discontinued              (7.37      )   7.22            ―
operations
Diluted net income per common       $ 10.70        $ 23.39           (54  )
share
Diluted average number of common     7,316         7,508      
shares outstanding
                                                                        
                                                                        


THE WASHINGTON POST COMPANY
BUSINESS SEGMENT INFORMATION
(Unaudited)
                                                                            
               Three Months Ended                 Nine Months Ended
               September 30,               %      September 30,                   %
(in           2013         2012         Change 2013           2012           Change
thousands)
Operating
Revenues
Education      $ 546,452     $ 551,696     (1  )  $ 1,622,497     $ 1,650,155     (2   )
Cable            202,381       199,625     1        607,069         585,414       4
television
Television       87,063        106,411     (18 )    271,653         283,499       (4   )
broadcasting
Other            66,632        20,187      ―        128,018         41,182        ―
businesses
Corporate        ―             ―           ―        ―               ―             ―
office
Intersegment    (49     )   (282    )   ―       (322      )   (571      )   ―
elimination
               $ 902,479   $ 877,637    3      $ 2,628,915   $ 2,559,679    3
Operating
Expenses
Education      $ 529,417     $ 537,003     (1  )  $ 1,585,792     $ 1,643,649     (4   )
Cable            162,666       159,712     2        486,031         474,278       2
television
Television       50,759        52,329      (3  )    152,283         154,690       (2   )
broadcasting
Other            71,678        27,511      ―        147,574         64,257        ―
businesses
Corporate        6,135         8,128       (25 )    17,516          21,271        (18  )
office
Intersegment    (49     )   (282    )   ―       (322      )   (571      )   ―
elimination
               $ 820,606   $ 784,401    5      $ 2,388,874   $ 2,357,574    1
Operating
Income
(Loss)
Education      $ 17,035      $ 14,693      16     $ 36,705        $ 6,506         ―
Cable            39,715        39,913      0        121,038         111,136       9
television
Television       36,304        54,082      (33 )    119,370         128,809       (7   )
broadcasting
Other            (5,046  )     (7,324  )   31       (19,556   )     (23,075   )   15
businesses
Corporate       (6,135  )   (8,128  )   25      (17,516   )   (21,271   )   18
office
               $ 81,873    $ 93,236     (12 )  $ 240,041     $ 202,105      19
Depreciation
Education      $ 18,978      $ 22,024      (14 )  $ 61,630        $ 63,752        (3   )
Cable            32,946        32,310      2        100,643         96,741        4
television
Television       3,109         3,126       (1  )    9,405           9,473         (1   )
broadcasting
Other            555           128         ―        1,561           381           ―
businesses
Corporate       45         ―           ―       105          ―             ―
office
               $ 55,633    $ 57,588     (3  )  $ 173,344     $ 170,347      2
Amortization
of
Intangible
Assets
Education      $ 2,287       $ 4,489       (49 )  $ 7,168         $ 11,528        (38  )
Cable            61            52          17       168             159           6
television
Television       ―             ―           ―        ―               ―             ―
broadcasting
Other            489           549         (11 )    2,531           1,649         53
businesses
Corporate       ―           ―           ―       ―             ―             ―
office
               $ 2,837     $ 5,090      (44 )  $ 9,867       $ 13,336       (26  )
Pension
Expense
(Credit)
Education      $ 4,169       $ 3,522       18     $ 12,506        $ 7,883         59
Cable            973           694         40       2,768           1,738         59
television
Television       1,251         1,432       (13 )    3,752           3,447         9
broadcasting
Other            173           45          ―        423             114           ―
businesses
Corporate       (9,299  )   (6,827  )   36      (27,549   )   (21,159   )   30
office
               $ (2,733  )  $ (1,134  )   ―      $ (8,100    )  $ (7,977    )   (2   )
                                                                                       


THE WASHINGTON POST COMPANY
EDUCATION DIVISION INFORMATION
(Unaudited)

               Three Months Ended                Nine Months Ended             
                September 30,               %      September 30,                   %
(in            2013         2012         Change 2013           2012           Change
thousands)
Operating                                                       
Revenues
Higher          $ 266,061     $ 273,703     (3  )  $ 811,013       $ 872,948       (7   )
education
Test              77,431        81,151      (5  )    232,064         223,767       4
preparation
Kaplan            201,305       194,158     4        574,086         546,862       5
international
Kaplan            2,223         3,809       (42 )    6,496           10,283        (37  )
corporate
Intersegment     (568    )   (1,125  )   ―       (1,162    )   (3,705    )   ―
elimination
                $ 546,452   $ 551,696    (1  )  $ 1,622,497   $ 1,650,155    (2   )
Operating
Expenses
Higher          $ 251,342     $ 272,193     (8  )  $ 768,659       $ 856,619       (10  )
education
Test              73,611        77,705      (5  )    224,758         227,834       (1   )
preparation
Kaplan            189,285       173,793     9        549,179         512,569       7
international
Kaplan            13,616        10,172      34       37,571          39,383        (5   )
corporate
Amortization
of intangible     2,287         4,489       (49 )    7,168           11,528        (38  )
assets
Intersegment     (724    )   (1,349  )   ―       (1,543    )   (4,284    )   ―
elimination
                $ 529,417   $ 537,003    (1  )  $ 1,585,792   $ 1,643,649    (4   )
Operating
Income (Loss)
Higher          $ 14,719      $ 1,510       ―      $ 42,354        $ 16,329        ―
education
Test              3,820         3,446       11       7,306           (4,067    )   ―
preparation
Kaplan            12,020        20,365      (41 )    24,907          34,293        (27  )
international
Kaplan            (11,393 )     (6,363  )   (79 )    (31,075   )     (29,100   )   (7   )
corporate
Amortization
of intangible     (2,287  )     (4,489  )   49       (7,168    )     (11,528   )   38
assets
Intersegment     156        224        ―       381          579          ―
elimination
                $ 17,035    $ 14,693     16     $ 36,705      $ 6,506        ―
Depreciation
Higher          $ 9,739       $ 12,168      (20 )  $ 33,919        $ 35,598        (5   )
education
Test              5,034         5,544       (9  )    14,658          14,308        2
preparation
Kaplan            3,903         3,841       2        12,015          12,490        (4   )
international
Kaplan           302        471        (36 )   1,038        1,356        (23  )
corporate
                $ 18,978    $ 22,024     (14 )  $ 61,630      $ 63,752       (3   )
Pension
Expense
Higher          $ 3,201       $ 2,234       43     $ 8,815         $ 5,408         63
education
Test              731           554         32       2,012           1,381         46
preparation
Kaplan            99            112         (12 )    273             113           ―
international
Kaplan           138        622        (78 )   1,406        981          43
corporate
                $ 4,169     $ 3,522      18     $ 12,506      $ 7,883        59
                                                                                   

NON-GAAP FINANCIAL INFORMATION
THE WASHINGTON POST COMPANY
(Unaudited)

In addition to the results reported in accordance with accounting principles
generally accepted in the United States (GAAP) included in this press release,
the Company has provided information regarding income from continuing
operations, excluding certain items described below, reconciled to the most
directly comparable GAAP measures. Management believes these non-GAAP
measures, when read in conjunction with the Company‘s GAAP financials, provide
useful information to investors by offering:

  *the ability to make meaningful period-to-period comparisons of the
    Company’s ongoing results;
  *the ability to identify trends in the Company’s underlying business; and
  *a better understanding of how management plans and measures the Company’s
    underlying business.

Income from continuing operations, excluding certain items, should not be
considered substitutes or alternatives to computations calculated in
accordance with and required by GAAP. These non-GAAP financial measures should
be read only in conjunction with financial information presented on a GAAP
basis.

The following table reconciles the non-GAAP financial measures to the most
directly comparable GAAP measures:

                            Three Months Ended       Nine Months Ended
                             September 30,             September 30,
(in thousands, except per   2013        2012        2013       2012
share amounts)
                                                                
Amounts attributable to
The Washington Post
Company common
stockholders
Income from continuing       $ 56,016   $ 56,257   $ 134,253  $ 122,129 
operations, as reported
Adjustments:
Severance and                  3,064        2,695        13,073      5,788
restructuring charges
Gain on sale of a cost       ―            ―            ―             (3,657  )
method investment
Foreign currency loss         (5,047 )   (1,928 )   5,984     (1,997  )
(gain)
Income from continuing
operations, adjusted         $ 54,033   $ 57,024   $ 153,310  $ 122,263 
(non-GAAP)
                                                                   
Per share information
attributable to The
Washington
Post Company common
stockholders
Diluted income per common
share from continuing        $ 7.53     $ 7.58     $ 18.07    $ 16.17   
operations, as reported
Adjustments:
Severance and                  0.42         0.37         1.79        0.78
restructuring charges
Gain on sale of a cost       ―            ―            ―             (0.48   )
method investment
Foreign currency loss         (0.69  )   (0.26  )   0.83      (0.27   )
(gain)
Diluted income per common
share from continuing        $ 7.26     $ 7.69     $ 20.69    $ 16.20   
operations, adjusted
(non-GAAP)
                                                                   
The adjusted diluted per share amounts may not compute due to rounding.


Contact:

The Washington Post Company
Hal S. Jones, 202-334-6645
 
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