Exhibit 99.3
2006 Consolidated Financial Guidance Summary
(in millions, except per share data)
(in millions, except per share data)
Nine Months Ended | Three Months Ended | Year Ended | ||||||||||||||||||
September 30, 2006 | December 31, 2006 | December 31, 2006 | ||||||||||||||||||
Range | Range | |||||||||||||||||||
Revenue | $ | 868.6 | $ | 305.0 | $ | 310.0 | $ | 1,173.6 | $ | 1,178.6 | ||||||||||
Earnings before interest, taxes, non-cash and other items (“Adjusted EBITDA”)(a) | $ | 158.9 | $ | 60.0 | $ | 63.0 | $ | 218.9 | $ | 221.9 | ||||||||||
Adjusted EBITDA per diluted common share | $ | 0.53 | $ | 0.20 | $ | 0.21 | $ | 0.73 | $ | 0.74 | ||||||||||
Interest income, net | 1.4 | 7.9 | 8.1 | 9.3 | 9.5 | |||||||||||||||
Depreciation and amortization | (52.0 | ) | (21.3 | ) | (20.4 | ) | (73.3 | ) | (72.4 | ) | ||||||||||
Non-cash advertising | (4.5 | ) | (2.7 | ) | (2.5 | ) | (7.2 | ) | (7.0 | ) | ||||||||||
Non-cash stock-based compensation | (35.2 | ) | (10.3 | ) | (10.0 | ) | (45.5 | ) | (45.2 | ) | ||||||||||
Legal expense | (1.8 | ) | — | — | (1.8 | ) | (1.8 | ) | ||||||||||||
Advisory expense | (4.2 | ) | — | — | (4.2 | ) | (4.2 | ) | ||||||||||||
Income tax provision | (12.1 | ) | (6.2 | ) | (5.7 | ) | (18.3 | ) | (17.8 | ) | ||||||||||
Minority interest in WebMD Health Corp., net of tax | 0.6 | (0.6 | ) | (0.9 | ) | — | (0.3 | ) | ||||||||||||
Income from continuing operations | $ | 51.1 | $ | 26.8 | $ | 31.6 | $ | 77.9 | $ | 82.7 | ||||||||||
Income from continuing operations per diluted common share | $ | 0.17 | $ | 0.09 | $ | 0.10 | $ | 0.26 | $ | 0.28 | ||||||||||
(a) | See Annex A — Explanation of Non-GAAP Financial Measures |
Operating Segments
Revenue
* | Emdeon Business Services — Approximately 61% of consolidated revenue in Q4. | ||
* | WebMD — Approximately 24% to 25% of consolidated revenue in Q4. | ||
* | ViPS — Approximately 8% of consolidated revenue in Q4. | ||
* | Porex — Approximately 6% of consolidated revenue in Q4. |
Adjusted EBITDA
* | Emdeon Business Services — Approximately 22% of segment revenue in Q4. | ||
* | WebMD — Approximately 26% to 27% of segment revenue in Q4. | ||
* | ViPS — Approximately 20% to 21% of segment revenue in Q4. | ||
* | Porex — Approximately 27% of segment revenue in Q4. | ||
* | Corporate — Approximately 3.4% of consolidated revenue. |
Other Assumptions
* | The 2006 Guidance includes actual expenses for the first nine 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 sale of a 52% interest in the Emdeon Business Services segment. | ||
* | Non-cash stock-based compensation expense considers the January 1, 2006 adoption of SFAS 123R. | ||
* | 2006 Adjusted EBITDA per diluted share and income from continuing operations per diluted share are both calculated on an assumed share count of approximately 300 million. | ||
* | Additional details on WebMD’s guidance can be found in the press release issued by WebMD on November 2, 2006. | ||
* | Does not reflect any adjustments for the pending transaction to sell a 52% interest in Emdeon Business Services. | ||
* | Does not reflect any adjustments for the previously announced Tender Offer. |