Exhibit 99.3
2006 Consolidated Financial Guidance Summary
(in millions, except per share amounts)
Quarterly Mix | ||||||||||||||||||||||||
Range | Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||||
Revenue | $ | 1,430 | $ | 1,450 | 23 | % | 25 | % | 25 | % | 27 | % | ||||||||||||
Earnings before interest, taxes, non-cash and other items (“Adjusted EBITDA”)(a) | $ | 251 | $ | 264 | 21 | % | 26 | % | 25 | % | 28 | % | ||||||||||||
Interest income, net | (0.4 | ) | (0.7 | ) | ||||||||||||||||||||
Depreciation and amortization | 80.2 | 81.9 | 23 | % | 24 | % | 26 | % | 27 | % | ||||||||||||||
Non-cash stock-based compensation | 48.2 | 49.2 | 26 | % | 27 | % | 26 | % | 21 | % | ||||||||||||||
Non-cash advertising | 7.4 | 7.6 | 22 | % | 16 | % | 23 | % | 39 | % | ||||||||||||||
Income tax provision | 22.3 | 23.3 | 20 | % | 24 | % | 26 | % | 30 | % | ||||||||||||||
Legal expense | 0.8 | 0.8 | ||||||||||||||||||||||
Advisory expenses | 4.1 | 4.1 | ||||||||||||||||||||||
Minority interest in WebMD Health Corp., net of tax | (0.6 | ) | (0.2 | ) | ||||||||||||||||||||
Net income | $ | 89.0 | $ | 98.0 | 18 | % | 25 | % | 24 | % | 33 | % | ||||||||||||
Adjusted EBITDA per diluted share | $ | 0.84 | $ | 0.88 | ||||||||||||||||||||
Net income per diluted share | $ | 0.30 | $ | 0.33 | ||||||||||||||||||||
(a) | See Annex A — Explanation of Non-GAAP Financial Measures |
Operating Segments
Revenue:
* Emdeon Business Services — Approximately 57% of consolidated revenue in Q3 decreasing to 56% in Q4.
* Emdeon Practice Services — Approximately 22% of consolidated revenue in Q3 decreasing to 21% in Q4.
* WebMD — Approximately 18% of consolidated revenue in Q3 increasing to 19% in Q4.
* Porex — Approximately 6% of consolidated revenue for the remainder of the year.
* Inter-segment eliminations — Approximately 2.5% of consolidated revenue.
Adjusted EBITDA:
* Emdeon Business Services — Approximately 22% of segment revenue for the remainder of the year.
* Emdeon Practice Services — Approximately 15% of segment revenue for the remainder of the year.
* WebMD — Approximately 21% of segment revenue in Q3 increasing to 26% in Q4.
* Porex — Approximately 27-28% of segment revenue for the remainder of the year.
* Corporate — Approximately 3.2% of consolidated revenue.
Other Assumptions
* The 2006 Guidance includes expenses for the first six months of 2006, but does not reflect any projected expenses related to either the on-going Department of Justice Investigation or advisory expense associated with the evaluation of strategic alternatives for the Emdeon Business Services and Emdeon Practice Services segments.
* 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.
* Additional details on WebMD’s guidance can be found in the press release issued by WebMD on August 3, 2006.