HLTH 8K Webmd Reports Fourth Quarter Income Before Taxes, Non-cash and Other Items Increased to $37.6 Million from $1 Million In Prior Year | SEC 14 Mar 03

EXHIBIT 99.2

WebMD CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data, unaudited)



		Three Months Ended						Years Ended

		December 31,			December 31,			December 31,			December 31,
		2002 (b)			2001 (b)			2002 (b)			2001 (b)

Revenue (a)		$	241,405		$	223,541		$	925,877		$	901,028
Costs and expenses
	Cost of operations (a)		138,132			145,951			545,142			604,201
	Development and engineering		10,908			10,342			43,849			43,839
	Sales, marketing, general and administrative		66,912			97,587			291,710			457,540
	Depreciation and amortization		31,085			125,970			130,074			2,400,804
	Impairment of long-lived and other assets		–			–			609			3,826,893
	Restructuring and integration charge (benefit)		–			46,594			(4,690	)		266,755
	Gain on investments		–			–			6,547			–
	Interest income		5,258			3,937			19,662			30,544
	Interest expense		2,920			147			8,940			1,101
	Other income, net		1,521			–			3,844			–

Income (loss) before income tax (benefit) provision			(1,773	)		(199,113	)		(59,704	)		(6,669,561	)
	Income tax (benefit) provision		656			417			(10,002	)		2,757

Net income (loss)		$	(2,429	)	$	(199,530	)	$	(49,702	)	$	(6,672,318	)

Basic and diluted net income (loss) per common share		$	(0.01	)	$	(0.62	)	$	(0.16	)	$	(19.14	)

Weighted-average shares outstanding used in computing basic and diluted net income (loss) per common share			298,188			319,994			304,168			348,570

(a) Effective January 1, 2002, the Company has changed its accounting as required by EITF 01-14 and has included the revenue related to reimbursement of out-of-pocket expenses as a component of both revenues and cost of operations. This reclassification resulted in an increase in previously reported revenue and cost of operations of $18,135 and $73,408 for the three and twelve months ended December 31, 2001, respectively.

(b) The Company terminated its divestiture efforts related to Porex, its Plastic Technologies segment in February 2003. Consequently, the related assets, liabilities and results of operations have been reclassified to reflect Porex as a continuing operation for all periods presented.

WebMD CORPORATION

CONSOLIDATED SEGMENT INFORMATION

(In thousands, except per share data, unaudited)



		Three Months Ended				Years Ended

		December 31,		December 31,		December 31,		December 31,
		2002 (b)		2001 (b)		2002 (b)		2001 (b)

Revenue
	Transaction services (a)	$	116,653	$	113,100	$	466,810	$	457,448
	Physician services		72,568		65,500		275,306		260,209
	Portal services		29,305		20,066		84,296		74,626
	Plastic technologies		28,188		29,051		119,992		121,025
	Eliminations and other, net		(5,309)		(4,176)		(20,527)		(12,280)

		$	241,405	$	223,541	$	925,877	$	901,028

Income (loss) before taxes, restructuring, non-cash and other items
	Transaction services	$	25,025	$	13,609	$	85,154	$	41,987
	Physician services		7,025		5,495		26,685		20,827
	Portal services		9,053		(12,611)		5,574		(79,437)
	Plastic technologies		6,735		7,304		30,006		30,809
	Corporate and other		(12,531)		(16,625)		(51,272)		(94,813)
	Interest income		5,258		3,937		19,662		30,544
	Interest expense		(2,920)		(147)		(8,940)		(1,101)

		$	37,645	$	962	$	106,869	$	(51,184)

	Basic and diluted income (loss) per common share before taxes, restructuring, non-cash and other items (c)	$	0.13	$	0.00	$	0.35	$	(0.15)


Taxes, restructuring, non-cash and other items
	Depreciation and amortization	$	(31,085)	$	(125,970)	$	(130,074)	$	(2,400,804)
	Amortization of prepaid content and services (included in cost of operations)		(2,588)		(1,531)		(4,765)		(1,531)
	Amortization of prepaid content and services (included in sales, marketing, general and administrative)		(3,560)		(17,713)		(20,941)		(43,943)
	Non-cash stock compensation (included in sales, marketing, general and administrative)		(3,706)		(8,267)		(25,265)		(78,451)
	Impairment of long-lived and other assets		–		–		(609)		(3,826,893)
	Restructuring and integration (charge) benefit		–		(46,594)		4,690		(266,755)
	Income tax benefit (provision)		(656)		(417)		10,002		(2,757)
	Other income, net		1,521		–		3,844		–
	Gain on investments		–		–		6,547		–

Net income (loss)		$	(2,429)	$	(199,530)	$	(49,702)	$	(6,672,318)

(c) Basic and diluted income (loss) per common share before taxes, restructuring, non-cash and other items is based on the weighted average shares outstanding used in computing basic and diluted net income (loss) per common share.

WebMD CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, unaudited)


		December 31,		December 31,
		2002 (a)		2001 (a)

Assets
Cash and cash equivalents		$	179,541	$	286,273
Short-term investments			10,888		100,249
Accounts receivable, net			170,467		166,582
Inventory			18,804		19,185
Current portion of prepaid content and distribution services			25,406		28,818
Other current assets			26,197		16,852

	Total current assets		431,303		617,959
Marketable debt securities			449,289		3,062
Marketable equity securities			7,427		15,707
Property and equipment, net			94,737		94,208
Prepaid content and distribution services			48,532		71,579
Goodwill, net			629,055		587,254
Intangible assets, net			79,536		188,524
Other assets			26,369		23,161

		$	1,766,248	$	1,601,454

Liabilities and Stockholders’ Equity
Accounts payable		$	11,494	$	19,315
Accrued expenses			212,600		241,706
Deferred revenue			81,179		65,861
Current portion of long-term debt			6,546		209

	Total current liabilities		311,819		327,091
Convertible subordinated notes			300,000		–
Long-term debt			119		7,624
Other long-term liabilities			509		1,227
Series B convertible redeemable preferred stock			–		10,000
Stockholders’ Equity			1,153,801		1,255,512

		$	1,766,248	$	1,601,454

(a) The Company terminated its divestiture efforts related to Porex, its Plastic Technologies segment in February 2003. Consequently, the related assets, liabilities and results of operations have been reclassified to reflect Porex as a continuing operation for all periods presented.

HLTH Inactive 8-KWebmd Reports Fourth Quarter Income Before Taxes, Non-cash and Other Items Increased to $37.6 Million from $1 Million In Prior Year