HLTH 8-K Roger C. Holstein Appointed Chief Executive Officer

EXHIBIT 99.2

WebMD CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data, unaudited)

		Three Months Ended
		March 31,
		2003			2002
Revenue		$	234,743		$	225,873
Costs and expenses:
	Cost of operations		134,380			138,531
	Development and engineering		11,012			10,868
	Sales, marketing, general and administrative		70,070			79,366
	Depreciation and amortization		27,976			32,759
	Restructuring and integration charge (benefit)		—			(3,750	)
	Gain on investments		183			—
	Interest income		5,055			3,140
	Interest expense		2,921			141
Income (loss) before income tax (benefit) provision			(6,378	)		(28,902	)
	Income tax (benefit) provision		980			700
Net income (loss)		$	(7,358	)	$	(29,602	)
Basic and diluted net income (loss) per common share		$	(0.02	)	$	(0.09	)
Weighted-average shares outstanding used in computing basic and diluted net income (loss) per common share			302,892			311,668

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WebMD CORPORATION
CONSOLIDATED SEGMENT INFORMATION
(In thousands, except per share data, unaudited)

		Three Months Ended
		March 31,
		2003			2002
Revenues
	Transaction services	$	115,493		$	117,927
	Physician services		72,011			66,089
	Portal services		22,180			17,134
	Plastic technologies		30,538			29,541
	Inter-segment eliminations		(5,479	)		(4,818	)
		$	234,743		$	225,873
Income (loss) before taxes, restructuring, non-cash and other items
	Transaction services	$	24,051		$	17,538
	Physician services		6,297			6,252
	Portal services		4,018			(4,837	)
	Plastic technologies		7,280			7,598
	Corporate		(12,462	)		(14,607	)
	Interest income		5,055			3,140
	Interest expense		(2,921	)		(141	)
		$	31,318		$	14,943
	Basic and diluted income (loss) per common share before taxes, restructuring, non-cash and other items (a)	$	0.10		$	0.05
Taxes, restructuring, non-cash and other items(b)
	Depreciation and amortization	$	(27,976	)	$	(32,759	)
	Amortization of prepaid content and services (included in cost of operations)		—			(974	)
	Amortization of prepaid content and services (included in sales, marketing, general and administrative)		(6,146	)		(6,286	)
	Non-cash stock compensation (included in sales, marketing, general and administrative)		(3,757	)		(7,576	)
	Restructuring and integration (charge) benefit		—			3,750
	Income tax benefit (provision)		(980	)		(700	)
	Gain on investments		183			—
Net income (loss)		$	(7,358	)	$	(29,602	)
Basic and diluted net income (loss) per common share		$	(0.02	)	$	(0.09	)

(a) 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.

(b) Reconciliation of income (loss) before taxes, restructuring, non-cash and other items to net income (loss).

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WebMD CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)

			March 31,		December 31,
			2003		2002
			(Unaudited)
Assets
Cash and cash equivalents			$	252,652	$	179,541
Short-term investments				214,276		10,888
Accounts receivable, net				176,571		170,467
Inventory				18,489		18,804
Current portion of prepaid content and distribution services				25,660		25,406
Other current assets				18,447		26,197
		Total current assets		706,095		431,303
Marketable debt securities				218,602		449,289
Marketable equity securities				7,407		7,427
Property and equipment, net				91,714		94,737
Prepaid content and distribution services				42,324		48,532
Goodwill				629,217		629,055
Intangible assets, net				58,989		79,536
Other assets				26,240		26,369
			$	1,780,588	$	1,766,248
Liabilities and Stockholders’ Equity
Accounts payable			$	11,711	$	11,494
Accrued expenses				207,992		212,600
Deferred revenue				85,365		81,179
Current portion of long-term debt				6,546		6,546
	Total current liabilities			311,614		311,819
Convertible subordinated notes				300,000		300,000
Other long-term liabilities				605		628
Stockholders’ equity				1,168,369		1,153,801
			$	1,780,588	$	1,766,248

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WebMD CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)

					Three Months Ended
					March 31,
					2003			2002
Cash flows from operating activities:
	Net income (loss)				$	(7,358	)	$	(29,602	)
	Adjustments to reconcile net income (loss) to net cash provided by operating activities:
		Depreciation and amortization				27,976			32,759
		Amortization of debt issuance costs				375			—
		Non-cash content and distribution services				6,146			7,260
		Non-cash stock based compensation				3,757			7,576
		Gain on investments				(183	)		—
		Changes in operating assets and liabilities:
			Accounts receivable			(6,074	)		(1,692	)
			Inventory			315			(1,894	)
			Prepaid content and distribution services			(191	)		(1,649	)
			Other, net			9,495			807
			Accounts payable			190			(3,389	)
			Accrued expenses			(4,610	)		10,049
			Deferred revenue			4,112			8,393
				Net cash provided by (used in) operating activities		33,950			28,618
Cash flows from investing activities:
	Proceeds from maturities of available-for-sale securities					801			79,248
	Proceeds from maturities and redemptions of held-to-maturity securities					101,919			1,055
	Purchases of available-for-sale securities					(1,164	)		—
	Purchases of held-to-maturity securities					(75,119	)		(156,714	)
	Purchases of property and equipment					(4,022	)		(5,753	)
	Cash paid in business combinations, net of cash acquired					(344	)		(1,142	)
				Net cash provided by (used in) investing activities		22,071			(83,306	)
Cash flows from financing activities:
	Proceeds from issuance of common stock					17,025			5,351
	Payments of notes payable and other					(19	)		(645	)
	Redemption of Series B Preferred Stock					—			(10,000	)
	Purchases of treasury stock					(93	)		—
				Net cash provided by (used in) financing activities		16,913			(5,294	)
Effect of exchange rates on cash						177			(121	)
Net increase (decrease) in cash and cash equivalents						73,111			(60,103	)
Cash and cash equivalents at beginning of period						179,541			286,273
Cash and cash equivalents at end of period					$	252,652		$	226,170

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