Exhibit 99.3
2006 Consolidated Financial Guidance Summary
(in millions, except per share amounts)
Quarterly Mix | ||||||||||||||||||||||||
Range | Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||||
Revenue | $ | 1,380.0 | $ | 1,430.0 | 24% | 25% | 25% | 26% | ||||||||||||||||
Earnings before interest, taxes, non-cash and other items (“Adjusted EBITDA”) | $ | 225.0 | $ | 255.0 | 23% | 24% | 25% | 28% | ||||||||||||||||
Interest expense, net | 3.0 | 4.0 | ||||||||||||||||||||||
Depreciation and amortization | 75.5 | 80.1 | 24% | 24% | 26% | 26% | ||||||||||||||||||
Non-cash stock-based compensation | 48.0 | 50.0 | 25% | 27% | 27% | 21% | ||||||||||||||||||
Amortization of non-cash advertising | 7.3 | 7.5 | 22% | 24% | 20% | 34% | ||||||||||||||||||
Income tax provision | 21.0 | 22.6 | 21% | 21% | 26% | 32% | ||||||||||||||||||
Legal expense | 0.5 | 0.5 | ||||||||||||||||||||||
Minority interest in WebMD Health Corp., net of tax | (0.3 | ) | 0.3 | |||||||||||||||||||||
Net income | $ | 70.0 | $ | 90.0 | 21% | 23% | 23% | 33% | ||||||||||||||||
Adjusted EBITDA per diluted share | $ | 0.75 | $ | 0.85 | ||||||||||||||||||||
Net income per diluted share | $ | 0.23 | $ | 0.30 | ||||||||||||||||||||
Operating Segments
Revenue:
* | Emdeon Business Services — Approximately 59% of consolidated revenue in Q2 decreasing to 57% in Q3 and 56% by Q4. | ||
* | Emdeon Practice Services — Approximately 22% of consolidated revenue in Q2 increasing to 23% in Q3 and Q4. | ||
* | WebMD — Approximately 15% of consolidated revenue in Q2 increasing to approximately 18% by Q4. | ||
* | Porex — Approximately 6% of consolidated revenue throughout the year. | ||
* | Eliminations — Approximately 2.5% of consolidated revenue. |
Adjusted EBITDA:
* | Emdeon Business Services — Approximately 21% of segment revenue throughout 2006. | ||
* | Emdeon Practice Services — Approximately 12% of segment revenue in Q2, improving to 14% by Q4. | ||
* | WebMD — Approximately 16% of segment revenue in Q2, increasing to about 29% in Q4. | ||
* | Porex — Approximately 27% of segment revenue throughout the year, slightly higher margins in the seasonally stronger Q2. | ||
* | Corporate — Approximately 3.3% of consolidated revenue. |
Other Assumptions
* | The 2006 Guidance includes actual expense for Q1 2006, but does not reflect any projected expenses related to the on-going Department of Justice Investigation. | ||
* | Adjusted EBITDA per diluted share and net income per diluted share are both calculated on an assumed share count of approximately 299 million. | ||
* | Non-cash stock-based compensation expense considers the January 1, 2006 adoption of SFAS 123R. |