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

EXHIBIT 99.3

WebMD CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data, unaudited)

		Three Months Ended												Year Ended
		March 31,			June 30,			September 30,			December 31,			December 31,
		2002			2002			2002			2002			2002
Revenue		$	225,873		$	227,644		$	230,955		$	241,405		$	925,877
Costs and expenses:
	Cost of operations		138,531			135,648			132,831			138,132			545,142
	Development and engineering		10,868			11,113			10,960			10,908			43,849
	Sales, marketing, general and administrative		79,366			76,511			68,921			66,912			291,710
	Depreciation and amortization		32,759			33,033			33,197			31,085			130,074
	Impairment of long-lived and other assets		–			609			–			–			609
	Restructuring and integration (benefit) charge		(3,750	)		1,160			(2,100	)		–			(4,690	)
	Gain on investments		–			5,866			681			–			6,547
	Interest income		3,140			6,022			5,242			5,258			19,662
	Interest expense		141			2,954			2,925			2,920			8,940
	Other income, net		–			–			2,323			1,521			3,844
Loss before income tax (benefit) provision			(28,902	)		(21,496	)		(7,533	)		(1,773	)		(59,704	)
	Income tax (benefit) provision		700			713			(12,071	)		656			(10,002	)
Net income (loss)		$	(29,602	)	$	(22,209	)	$	4,538		$	(2,429	)	$	(49,702	)
Basic net income (loss) per common share		$	(0.09	)	$	(0.07	)	$	0.02		$	(0.01	)	$	(0.16	)
Diluted net income (loss) per common share		$	(0.09	)	$	(0.07	)	$	0.01		$	(0.01	)	$	(0.16	)
Weighted-average shares outstanding used in computing net income (loss) per common share
	Basic		311,668			309,462			297,352			298,188			304,168
	Diluted		311,668			309,462			308,537			298,188			304,168

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 STATEMENTS OF OPERATIONS

(In thousands, except per share data, unaudited)

		Three Months Ended												Year Ended
		March 31,			June 30,			September 30,			December 31,			December 31,
		2001			2001			2001			2001			2001
Revenue		$	233,144		$	228,766		$	215,577		$	223,541		$	901,028
Costs and expenses:
	Cost of operations		159,675			153,538			145,037			145,951			604,201
	Development and engineering		13,337			10,132			10,028			10,342			43,839
	Sales, marketing, general and administrative		134,933			119,938			105,082			97,587			457,540
	Depreciation and amortization		762,618			757,918			754,298			125,970			2,400,804
	Impairment of long-lived and other assets		–			–			3,826,893			–			3,826,893
	Restructuring and integration charge		208,683			11,211			267			46,594			266,755
	Interest income		11,261			8,645			6,701			3,937			30,544
	Interest expense		277			447			230			147			1,101
Loss before income tax provision			(1,035,118	)		(815,773	)		(4,619,557	)		(199,113	)		(6,669,561	)
	Income tax provision		641			1,010			689			417			2,757
Net loss		$	(1,035,759	)	$	(816,783	)	$	(4,620,246	)	$	(199,530	)	$	(6,672,318	)
Basic net loss per common share		$	(2.90	)	$	(2.28	)	$	(12.85	)	$	(0.62	)	$	(19.14	)
Diluted net loss per common share		$	(2.90	)	$	(2.28	)	$	(12.85	)	$	(0.62	)	$	(19.14	)
Weighted-average shares outstanding used in computing net loss per common share
	Basic		356,806			357,878			359,600			319,994			348,570
	Diluted		356,806			357,878			359,600			319,994			348,570

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.

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, within the Transaction Services segment, for all 2001 periods.

WebMD CORPORATION

CONSOLIDATED SEGMENT INFORMATION

(In thousands, except per share data, unaudited)

		Three Months Ended												Year Ended
		March 31,			June 30,			September 30,			December 31,			December 31,
		2002			2002			2002			2002			2002
Revenue
	Transaction services	$	117,927		$	117,204		$	115,026		$	116,653		$	466,810
	Physician services		66,089			66,068			70,581			72,568			275,306
	Portal services		17,134			18,006			19,851			29,305			84,296
	Plastic technologies		29,541			31,509			30,754			28,188			119,992
	Eliminations and other, net		(4,818	)		(5,143	)		(5,257	)		(5,309	)		(20,527	)
		$	225,873		$	227,644		$	230,955		$	241,405		$	925,877
Income (loss) before taxes, restructuring, non-cash and other items
	Transaction services	$	17,538		$	18,264		$	24,327		$	25,025		$	85,154
	Physician services		6,252			6,234			7,174			7,025			26,685
	Portal services		(4,837	)		(2,219	)		3,577			9,053			5,574
	Plastic technologies		7,598			8,197			7,476			6,735			30,006	��
	Corporate and other		(14,607	)		(12,641	)		(11,493	)		(12,531	)		(51,272	)
	Interest income		3,140			6,022			5,242			5,258			19,662
	Interest expense		(141	)		(2,954	)		(2,925	)		(2,920	)		(8,940	)
		$	14,943		$	20,903		$	33,378		$	37,645		$	106,869
	Basic and diluted income per common share before taxes, restructuring, non-cash and other items	$	0.05		$	0.07		$	0.11		$	0.13		$	0.35
Taxes, restructuring, non-cash and other items
	Depreciation and amortization	$	(32,759	)	$	(33,033	)	$	(33,197	)	$	(31,085	)	$	(130,074	)
	Non-cash content and distribution services and stock compensation		(14,836	)		(13,463	)		(12,818	)		(9,854	)		(50,971	)
	Impairment of long-lived and other assets		–			(609	)		–			–			(609	)
	Restructuring and integration benefit (charge)		3,750			(1,160	)		2,100			–			4,690
	Income tax benefit (provision)		(700	)		(713	)		12,071			(656	)		10,002
	Other income, net		–			–			2,323			1,521			3,844
	Gain on investments		–			5,866			681			–			6,547
Net income (loss)		$	(29,602	)	$	(22,209	)	$	4,538		$	(2,429	)	$	(49,702	)

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.

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

CONSOLIDATED SEGMENT INFORMATION

(In thousands, except per share data, unaudited)

		Three Months Ended												Year Ended
		March 31,			June 30,			September 30,			December 31,			December 31,
		2001			2001			2001			2001			2001
Revenue
	Transaction services	$	117,095		$	116,558		$	110,695		$	113,100		$	457,448
	Physician services		66,125			66,471			62,113			65,500			260,209
	Portal services		21,607			17,045			15,908			20,066			74,626
	Plastic technologies		30,203			31,322			30,449			29,051			121,025
	Eliminations and other, net		(1,886	)		(2,630	)		(3,588	)		(4,176	)		(12,280	)
		$	233,144		$	228,766		$	215,577		$	223,541		$	901,028
Income (loss) before taxes, restructuring, non-cash and other items
	Transaction services	$	8,877		$	8,886		$	10,615		$	13,609		$	41,987
	Physician services		5,257			6,638			3,437			5,495			20,827
	Portal services		(27,122	)		(21,140	)		(18,564	)		(12,611	)		(79,437	)
	Plastic technologies		6,982			8,760			7,763			7,304			30,809
	Corporate and other		(30,609	)		(26,240	)		(21,339	)		(16,625	)		(94,813	)
	Interest income		11,261			8,645			6,701			3,937			30,544
	Interest expense		(277	)		(447	)		(230	)		(147	)		(1,101	)
		$	(25,631	)	$	(14,898	)	$	(11,617	)	$	962		$	(51,184	)
	Basic and diluted income (loss) per common share before taxes, restructuring, non-cash and other items	$	(0.07	)	$	(0.04	)	$	(0.03	)	$	0.00		$	(0.15	)
Taxes, restructuring, non-cash and other items
	Depreciation and amortization	$	(762,618	)	$	(757,918	)	$	(754,298	)	$	(125,970	)	$	(2,400,804	)
	Non-cash content and distribution services and stock compensation		(38,186	)		(31,746	)		(26,482	)		(27,511	)		(123,925	)
	Impairment of long-lived and other assets		–			–			(3,826,893	)		–			(3,826,893	)
	Restructuring and integration charge		(208,683	)		(11,211	)		(267	)		(46,594	)		(266,755	)
	Income tax provision		(641	)		(1,010	)		(689	)		(417	)		(2,757	)
Net loss		$	(1,035,759	)	$	(816,783	)	$	(4,620,246	)	$	(199,530	)	$	(6,672,318	)

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.

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, within the Transaction Services segment, for all 2001 periods.

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 BALANCE SHEETS

(In thousands, unaudited)

		March 31,		June 30,		September 30,		December 31,
		2002		2002		2002		2002
Assets
Cash and cash equivalents		$	226,170	$	174,234	$	165,847	$	179,541
Short-term investments			21,233		7,336		11,880		10,888
Accounts receivable, net			168,273		164,490		163,394		170,467
Inventory			21,079		20,222		18,997		18,804
Federal income tax receivable			–		–		12,887		–
Current portion of prepaid content and distribution services			27,108		26,453		25,799		25,406
Other current assets			18,190		17,651		22,764		26,197
	Total current assets		482,053		410,386		421,568		431,303
Marketable debt securities			157,966		449,450		450,725		449,289
Marketable equity securities			17,603		15,819		14,025		7,427
Property and equipment, net			92,928		96,305		97,333		94,737
Prepaid content and distribution services			67,705		61,473		55,241		48,532
Goodwill, net			605,195		603,112		607,059		629,055
Intangible assets, net			145,856		124,070		99,866		79,536
Other assets			20,888		27,640		27,621		26,369
		$	1,590,194	$	1,788,255	$	1,773,438	$	1,766,248
Liabilities and Stockholders’ Equity
Accounts payable		$	15,981	$	12,164	$	13,625	$	11,494
Accrued expenses			251,845		244,460		231,840		212,600
Deferred revenue			74,332		77,118		73,702		81,179
Current portion of long-term debt			6,732		6,545		6,545		6,546
	Total current liabilities		348,890		340,287		325,712		311,819
Convertible subordinated notes			–		300,000		300,000		300,000
Long-term debt			1,023		126		123		119
Other long-term liabilities			662		541		516		509
Stockholders’ equity			1,239,619		1,147,301		1,147,087		1,153,801
		$	1,590,194	$	1,788,255	$	1,773,438	$	1,766,248

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

CONDENSED BALANCE SHEETS

(In thousands, unaudited)

		March 31,		June 30,		September 30,		December 31,
		2001		2001		2001		2001
Assets
Cash and cash equivalents		$	577,669	$	516,726	$	520,406	$	286,273
Short-term investments			82,415		97,403		97,378		100,249
Accounts receivable, net			197,507		200,294		172,210		166,582
Inventory			17,142		17,389		18,104		19,185
Current portion of prepaid content and distribution services			7,345		10,493		29,486		28,818
Other current assets			25,116		24,301		17,057		16,852
	Total current assets		907,194		866,606		854,641		617,959
Marketable debt securities			3,081		3,075		3,068		3,062
Marketable equity securities			21,028		8,560		7,716		15,707
Property and equipment, net			123,972		123,281		88,776		94,208
Prepaid content and distribution services			114,378		118,240		78,101		71,579
Goodwill, net			5,793,620		5,089,348		664,252		587,254
Intangible assets, net			363,882		321,456		217,487		188,524
Other assets			49,702		39,598		33,122		23,161
		$	7,376,857	$	6,570,164	$	1,947,163	$	1,601,454
Liabilities and Stockholders’ Equity
Accounts payable		$	22,067	$	18,043	$	18,992	$	19,315
Accrued expenses			291,453		268,522		249,085		241,706
Deferred revenue			48,962		51,473		57,099		65,861
Current portion of long-term debt			410		322		258		209
	Total current liabilities		362,892		338,360		325,434		327,091
Long-term debt			7,781		7,722		7,671		7,624
Other long-term liabilities			4,086		1,912		1,586		1,227
Series B convertible redeemable preferred stock			10,000		10,000		10,000		10,000
Stockholders’ equity			6,992,098		6,212,170		1,602,472		1,255,512
		$	7,376,857	$	6,570,164	$	1,947,163	$	1,601,454

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.