Exhibit 99.3
Certain Forward-Looking Information — Reconciliation of Non-GAAP to GAAP
Quarterly Mix | ||||||||||||||||||||||||
Consolidated | Range | Q1 | Q2 | Q3 | Q4 | |||||||||||||||||||
Revenues | $ | 1,145,000 | $ | 1,175,000 | 23%-24 | % | 24%-25 | % | 25%-26 | % | 26%-27 | % | ||||||||||||
Income before taxes, non-cash, restructuring and other items | 150,000 | 158,000 | 19 | % | 21 | % | 26 | % | 34 | % | ||||||||||||||
Depreciation and amortization | 56,000 | 57,000 | 23 | % | 25 | % | 26 | % | 26 | % | ||||||||||||||
Non-cash content and stock compensation | 27,000 | 27,000 | 28 | % | 27 | % | 25 | % | 20 | % | ||||||||||||||
Income tax provision | 13,000 | 14,000 | ||||||||||||||||||||||
Net income | $ | 54,000 | $ | 60,000 | 10 | % | 15 | % | 30 | % | 45 | % | ||||||||||||
Revenues:
• | Envoy — Approximately 59% of consolidated revenue in Q1 and approximately 57% of revenues for the balance of the year. | |||
• | Practice Services – Approximately 28% of consolidated revenues in Q1 and approximately 27% for the balance of the year. | |||
• | Health – Approximately 10% of consolidated revenue in Q1, increasing sequentially to approximately 13% by year-end. | |||
• | Porex – Approximately 7% of consolidated revenues throughout 2004. | |||
• | Eliminations – Approximately 3% of net revenues. |
Operating Margin:
• | Envoy – Approximately 18% in Q1 increasing to the low 20% range over the balance of the year. | |||
• | Practice Services – Low to mid single digits in Q1 to 10% or 11% by the end of 2004. | |||
• | Health – Approximately 15% in Q1 and increasing up to the high 20% range by year-end. | |||
• | Porex – Approximately 27-30% throughout the year. | |||
• | Corporate – Corporate expenses should be approximately 5% of net revenues. |