Earnings Per Share

3 Months Ended

Mar. 31, 2024

EARNINGS PER SHARE

The Company’s unvested restricted stock awards contain nonforfeitable rights to dividends and, therefore, are considered participating securities for purposes of computing earnings per share pursuant to the two-class method. The diluted earnings per share computed under the two-class method is lower than the diluted earnings per share computed under the treasury stock method, resulting in the presentation of the lower amount in diluted earnings per share. The computation of the earnings per share under the two-class method excludes the income attributable to the unvested restricted stock awards from the numerator and excludes the dilutive impact of those underlying shares from the denominator.

The following reflects the Company’s net income and share data used in the basic and diluted earnings per share computations using the two-class method:


	Three Months Ended March 31
(in thousands, except per share amounts)	2024			2023
Numerator:
Numerator for basic earnings per share:
Net income attributable to Graham Holdings Company common stockholders	$	124,380		$	52,272
Less: Dividends paid-common stock outstanding and unvested restricted shares	(15,352)			(15,812)
Undistributed earnings	109,028			36,460
Percent allocated to common stockholders (1)	99.33		%	99.35		%
	108,295			36,225
Add: Dividends paid-common stock outstanding	15,250			15,711
Numerator for basic earnings per share	$	123,545		$	51,936
Add: Additional undistributed earnings due to dilutive stock options	4			1
Numerator for diluted earnings per share	$	123,549		$	51,937
Denominator:
Denominator for basic earnings per share:
Weighted average shares outstanding	4,432			4,759
Add: Effect of dilutive stock options	25			17
Denominator for diluted earnings per share	4,457			4,776
Graham Holdings Company Common Stockholders:
Basic earnings per share	$	27.87		$	10.91
Diluted earnings per share	$	27.72		$	10.88

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Earnings per share amounts may not recalculate due to rounding.

Diluted earnings per share excludes the following weighted average potential common shares, as the effect would be antidilutive, as computed under the treasury stock method:


	Three Months Ended March 31
(in thousands)	2024	2023
Weighted average restricted stock	18	10

The diluted earnings per share amounts for the three months ended March 31, 2024 and March 31, 2023 exclude the effects of 105,000 stock options and contingently issuable shares outstanding as their inclusion would have been antidilutive due to a market condition.

In the three months ended March 31, 2024 and 2023, the Company declared regular dividends totaling $3.44 and $3.30 per common share, respectively.