HLTH 8-K Emdeon Reports Third Quarter Results

Exhibit 99.2

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

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2005		2004			2005		2004
Revenue	$	323,153	$	299,615		$	949,643	$	852,710
Costs and expenses:
Cost of operations		182,910		168,571			537,023		495,174
Development and engineering		14,681		14,392			43,778		38,479
Sales, marketing, general and administrative		82,386		84,762			248,056		245,054
Depreciation and amortization		18,895		15,189			52,940		40,922
Legal expense		5,904		2,325			14,347		6,577
Restructuring and integration charge		—		4,535			—		4,535
Interest income		5,125		4,512			13,382		14,506
Interest expense		2,996		4,843			11,672		14,429
Other expense (income), net		1,863		(94	)		7,407		(578	)
Income before income tax provision		18,643		9,604			47,802		22,624
Income tax provision		4,536		1,435			7,680		2,979
Net income	$	14,107	$	8,169		$	40,122	$	19,645
Net income per common share:
Basic	$	0.04	$	0.03		$	0.12	$	0.06
Diluted	$	0.04	$	0.02		$	0.11	$	0.06
Weighted-average shares outstanding used in computing net income per common share:
Basic		356,091		323,004			339,576		318,978
Diluted		370,313		333,978			351,875		333,048

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2005			2004			2005			2004
Revenues
Emdeon Business Services	$	190,502		$	174,643		$	567,749		$	504,459
Emdeon Practice Services		75,499			76,924			227,113			219,703
WebMD Health		45,094			37,017			119,134			95,178
Porex		20,410			19,385			60,663			58,543
Inter-segment eliminations		(8,352	)		(8,354	)		(25,016	)		(25,173	)
	$	323,153		$	299,615		$	949,643		$	852,710
Income before restructuring, taxes, non-cash and other items
Emdeon Business Services	$	35,926		$	31,750		$	114,599		$	90,514
Emdeon Practice Services		7,632			5,856			20,212			8,978
WebMD Health (c)		9,077			8,441			15,100			17,572
Porex		6,385			5,823			17,846			17,140
Corporate (c)		(12,738	)		(13,571	)		(36,485	)		(38,067	)
Interest income		5,125			4,512			13,382			14,506
Interest expense		(2,996	)		(4,843	)		(11,672	)		(14,429	)
	$	48,411		$	37,968		$	132,982		$	96,214
Basic income per common share before restructuring, taxes, non-cash and other items (a)	$	0.14		$	0.12		$	0.39			0.30
Diluted income per common share before restructuring, taxes, non-cash and other items (a)	$	0.13		$	0.11		$	0.38			0.29
Restructuring, taxes, non-cash and other items (b)
Depreciation and amortization	$	(18,895	)	$	(15,189	)	$	(52,940	)	$	(40,922	)
Amortization of non-cash advertising and distribution services (included in cost of operations)		(74	)		(104	)		(291	)		(705	)
Amortization of non-cash advertising and distribution services (included in sales, marketing, general and administrative)		(1,912	)		(3,505	)		(6,708	)		(14,188	)
Non-cash stock-based compensation (included in sales, marketing, general and administrative)		(1,120	)		(2,800	)		(3,487	)		(7,241	)
Legal expense		(5,904	)		(2,325	)		(14,347	)		(6,577	)
Restructuring and integration charge		—			(4,535	)		—			(4,535	)
Other (expense) income, net		(1,863	)		94			(7,407	)		578
Income tax provision		(4,536	)		(1,435	)		(7,680	)		(2,979	)
Net income	$	14,107		$	8,169		$	40,122		$	19,645
Net income per common share:
Basic	$	0.04		$	0.03		$	0.12		$	0.06
Diluted	$	0.04		$	0.02		$	0.11		$	0.06
Weighted-average shares outstanding used in computing net income per common share:
Basic		356,091			323,004			339,576			318,978
Diluted		370,313			333,978			351,875			333,048

(a)	Basic and diluted income per common share before restructuring, taxes, non-cash and other items is based on the weighted-average shares outstanding used in computing basic and diluted income per common share.
(b)	Reconciliation of income before restructuring, taxes, non-cash and other items to net income.
(c)	Income before restructuring, taxes, non-cash and other items during prior periods, for the Corporate and WebMD Health segments, has been reclassified to reflect Corporate’s services charge to WebMD Health.

EMDEON CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)

	September 30,			December 31,
	2005			2004
	(Unaudited)
Assets
Cash and cash equivalents	$	82,047		$	46,019
Stock subscription receivable		129,142			—
Short-term investments		603,360			61,675
Accounts receivable, net		230,174			204,447
Inventory		13,183			13,978
Prepaid expenses and other current assets		42,168			40,613
Total current assets		1,100,074			366,732
Marketable debt securities		147,060			511,864
Marketable equity securities		4,873			4,017
Property and equipment, net		112,786	��		89,677
Goodwill		1,026,998			1,010,564
Intangible assets, net		242,702			260,509
Other assets		52,257			48,871
Total Assets	$	2,686,750		$	2,292,234
Liabilities and Stockholders’ Equity
Accounts payable	$	10,669		$	17,366
Accrued expenses		168,363			201,528
Deferred revenue		111,672			99,543
Total current liabilities		290,704			318,437
Convertible notes		650,000			649,999
Other long-term liabilities		5,226			1,283
Minority interest in WebMD Health Corp.		41,506			—
Convertible redeemable exchangeable preferred stock		98,474			98,299
Stockholders’ equity		1,600,840			1,224,216
Total Liabilities and Stockholders’ Equity	$	2,686,750		$	2,292,234

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

	Nine Months Ended
	September 30,
	2005			2004
Cash flows from operating activities:
Net income	$	40,122		$	19,645
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		52,940			40,922
Amortization of debt issuance costs		1,856			2,255
Non-cash advertising and distribution services		6,999			14,893
Non-cash stock-based compensation		3,487			7,241
Bad debt expense		4,876			3,726
Loss (gain) on investments		3,642			(457	)
Loss on redemption of convertible debt		1,902			—
Non-cash reversal of income tax valuation allowance		4,330			—
Gain on sale of property and equipment		—			(121	)
Changes in operating assets and liabilities:
Accounts receivable		(28,861	)		(6,869	)
Inventory		795			(303	)
Accounts payable		(6,387	)		(874	)
Accrued expenses		7,913			(8,189	)
Deferred revenue		7,815			4,426
Prepaid expenses and other, net		(2,328	)		2,905
Net cash provided by operating activities		99,101			79,200
Cash flows from investing activities:
Proceeds from maturities and sales of available-for-sale securities		336,014			1,387,614
Purchases of available-for-sale securities		(516,109	)		(1,267,726	)
Purchases of property and equipment		(49,325	)		(24,889	)
Proceeds received from sale of property and equipment		400			417
Cash paid in business combinations, net of cash acquired		(74,410	)		(225,375	)
Net cash used in investing activities		(303,430	)		(129,959	)
Cash flows from financing activities:
Redemption of convertible debt		(86,694	)		—
Proceeds from issuance of common stock		43,384			30,528
Net proceeds from issuance of preferred stock		—			98,115
Net proceeds from issuance of convertible debt		289,875			—
Payments of notes payable and other		(495	)		(433	)
Purchases of treasury stock		(4,596	)		(22,267	)
Net cash provided by financing activities		241,474			105,943
Effect of exchange rates on cash		(1,117	)		(28	)
Net increase in cash and cash equivalents		36,028			55,156
Cash and cash equivalents at beginning of period		46,019			39,648
Cash and cash equivalents at end of period	$	82,047		$	94,804