EXHIBIT 99.3
Updated 2004 Financial Guidance
Table presented in millions, except per share data
Q3 | Q4 | Full Year 2004 | Full Year 2004 | |||||||||||||||||
(excluding ViPS) | (excluding ViPS) | (excluding ViPS) | ViPS (2) | (including ViPS) | ||||||||||||||||
Revenues | $ | 290 - $295 | $ | 300 - $305 | $ | 1,145 - $1,155 | $ | 22 - $24 | $ | 1,167 - $1,179 | ||||||||||
Income before taxes, non-cash and other items | $ | 34 - $35 | $ | 40 - $43 | $ | 132 - $136 | $ | 5 | $ | 137 - $141 | ||||||||||
Depreciation and amortization | 14 | 14 | 54 | 4 | 58 | |||||||||||||||
Non-cash content and stock compensation | 6 | 6 | 28 | — | 28 | |||||||||||||||
Legal expense (1) | — | — | 4 | — | 4 | |||||||||||||||
Income tax provision | 2 | 2 | 5 | — | 5 | |||||||||||||||
Net income | $ | 12 - $13 | $ | 18 - $21 | $ | 41 - $45 | $ | 1 | $ | 42 - $46 | ||||||||||
Earnings per share: | ||||||||||||||||||||
Income before taxes, non-cash and other items | $ | 0.10 | $ | 0.12 - $0.13 | $ | 0.39 - $0.40 | $ | 0.02 | $ | 0.41 - $0.42 | ||||||||||
Net income | $ | 0.04 | $ | 0.05 - $0.06 | $ | 0.12 - $0.13 | — | $ | 0.12 - $0.13 | |||||||||||
(1) | Legal expense reflects actual results for the six months ended June 30, 2004; no guidance has been provided for Q3 or Q4 | |
(2) | Reflects the operating results of ViPS since the date of acquisition; estimated to be mid-August |
* * *
Segment Information (excluding ViPS):
• | Envoy – expected to represent approximately 57% of consolidated revenues for the balance of the year; with operating margins of approximately 16% in Q3 and 18% in Q4. | |||
• | Practice Services — expected to represent approximately 26% of consolidated revenues for the balance of the year; with operating margins that are anticipated to improve to 6% in Q3 and 8% in Q4. | |||
• | Health — expected to represent approximately 13% of consolidated revenues for the balance of the year; with operating margins increasing to the high 20% range. | |||
• | Porex — expected to represent approximately 7% of consolidated revenues for the balance of the year; with operating margins of approximately 25-30%. | |||
• | Inter-segment eliminations should be approximately 3% of net revenues for the balance of the year. | |||
• | Corporate expenses should be approximately 5% of net revenues for the balance of the year. |