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The Washington Post Company Reports 2012 And Fourth Quarter Earnings

For the fourth quarter of 2012, revenue was $1,050.1 million, up 1% from $1,040.4 million in 2011. The Company reported an operating loss of $14.4 million in the fourth quarter of 2012, compared to operating income of $109.3 million in 2011. Revenues and operating results were down at the education and newspaper publishing divisions, while revenues and operating income increased at the television broadcasting and cable television divisions.

Division Results

Education

Education division revenue in 2012 totaled $2,196.5 million, a 9% decline from $2,404.5 million in 2011. Excluding revenue from acquired businesses, education division revenue declined 10% in 2012. For the fourth quarter of 2012, education division revenue totaled $544.4 million, a 6% decline from $580.8 million for the same period of 2011. Excluding revenue from acquired businesses, education division revenue declined 7% in the fourth quarter of 2012.

Kaplan reported an operating loss of $105.4 million for 2012, compared to operating income of $96.3 million in 2011; Kaplan reported an operating loss for the fourth quarter of 2012 of $111.9 million, compared to operating income of $30.9 million in the fourth quarter of 2011. Kaplan’s 2012 operating results were adversely impacted by a significant decline in Kaplan Higher Education (KHE) results; a $111.6 million noncash goodwill and other long-lived assets impairment charge related to KTP; and $45.2 million in restructuring costs. These were offset by improved results at KTP and Kaplan International.

In response to student demand levels, Kaplan has formulated and implemented restructuring plans at its various businesses that have resulted in significant costs in 2012 and 2011, with the objective of establishing lower cost levels in future periods. Across all businesses, restructuring costs totaled $45.2 million in 2012 and $28.9 million in 2011. Restructuring costs totaled $35.9 million in the fourth quarter of 2012 and $9.3 million in the fourth quarter of 2011. (Refer to the Education Division Information, Summary of Restructuring Charges schedule attached to this release for additional details.) Kaplan currently expects to incur approximately $25 million in additional restructuring costs in 2013 at KHE and Kaplan International in conjunction with completing these restructuring plans. Kaplan may also incur additional restructuring charges in 2013 as the Company continues to evaluate its cost structure.

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