HLTH 8-K Emdeon Announces Fourth Quarter Results

Exhibit 99.2

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

	Three Months Ended					Years Ended
	December 31,					December 31,
	2006		2005			2006		2005
Revenue :
Services	$	205,743	$	241,658		$	998,252	$	932,273
Products		24,308		22,106			100,356		94,202
Total revenue		230,051		263,764			1,098,608		1,026,475
Cost of operations :
Services		108,157		140,675			581,108		555,208
Products		9,676		9,884			42,650		40,446
Total cost of operations		117,833		150,559			623,758		595,654
Development and engineering		6,485		9,058			33,649		35,653
Sales, marketing, general and administrative		71,412		65,595			288,015		254,887
Depreciation and amortization		10,012		16,079			61,976		60,905
Legal expense		738		3,488			2,578		17,835
Gain on sale of EBS		352,297		—			352,297		—
Loss on investments		—		2,723			—		6,365
Interest income		16,889		8,147			32,339		21,527
Interest expense		4,697		4,652			18,779		16,322
Transition services income		2,184		—			2,524		—
Other expenses		—		—			4,198		3,765
Income from continuing operations before income tax provision (benefit)		390,244		19,757			452,815		56,616
Income tax provision (benefit)		44,111		(4,568	)		56,193		(1,001	)
Minority interest in WebMD Health Corp.		1,359		870			706		908
Equity in earnings of EBS Master LLC		763		—			763		—
Income from continuing operations		345,537		23,455			396,679		56,709
Income from discontinued operations, net of tax		889		9,397			371,060		16,265
Net income	$	346,426	$	32,852		$	767,739	$	72,974
Basic income per common share:
Income from continuing operations	$	1.35	$	0.07		$	1.42	$	0.17
Income from discontinued operations		0.00		0.02			1.33		0.04
Net income	$	1.35	$	0.09		$	2.75	$	0.21
Diluted income per common share: (a)
Income from continuing operations	$	1.14	$	0.07		$	1.25	$	0.16
Income from discontinued operations		0.00		0.02			1.12		0.05
Net income	$	1.14	$	0.09		$	2.37	$	0.21
Weighted-average shares outstanding used in computing income per common share:
Basic		256,688		348,261			279,234		341,747
Diluted		308,295		355,782			331,642		352,852

(a) Diluted income per common share for the three months and the year ended December 31, 2006 reflects the dilutive impact of the convertible notes.

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

	Three Months Ended						Years Ended
	December 31,						December 31,
	2006			2005			2006			2005
Revenue
Emdeon Business Services	$	103,116		$	172,364		$	661,090		$	689,305
WebMD		80,573			49,104			253,881			168,238
ViPS		25,349			24,003			98,874			90,313
Porex		21,158			18,461			85,702			79,124
Inter-segment eliminations		(145	)		(168	)		(939	)		(505	)
	$	230,051		$	263,764		$	1,098,608		$	1,026,475
Earnings before interest, taxes, non-cash and other items (“Adjusted EBITDA”)
Emdeon Business Services	$	25,392		$	35,214		$	152,911		$	138,529
WebMD		22,320			12,446			53,079			27,546
ViPS		5,012			4,921			20,529			16,913
Porex		6,242			4,678			24,974			22,524
Corporate		(9,781	)		(13,587	)		(43,414	)		(49,481	)
	$	49,185		$	43,672		$	208,079		$	156,031
Adjusted EBITDA per diluted common share (a)	$	0.16		$	0.12		$	0.63		$	0.44
Interest, taxes, non-cash and other items (b)
Depreciation and amortization	$	(10,012	)	$	(16,079	)	$	(61,976	)	$	(60,905	)
Non-cash stock-based compensation		(9,720	)		(1,249	)		(44,955	)		(4,880	)
Non-cash advertising		(2,960	)		(3,871	)		(7,414	)		(10,870	)
Legal expense		(738	)		(3,488	)		(2,578	)		(17,835	)
Interest income		16,889			8,147			32,339			21,527
Interest expense		(4,697	)		(4,652	)		(18,779	)		(16,322	)
Income tax (provision) benefit		(44,111	)		4,568			(56,193	)		1,001
Minority interest in WebMD Health Corp.		(1,359	)		(870	)		(706	)		(908	)
Equity in earnings of EBS Master LLC		763			—			763			—
Gain on sale of EBS		352,297			—			352,297			—
Loss on investments		—			(2,723	)		—			(6,365	)
Other expenses		—			—			(4,198	)		(3,765	)
Income from continuing operations		345,537			23,455			396,679			56,709
Income from discontinued operations, net of tax		889			9,397			371,060			16,265
Net income	$	346,426		$	32,852		$	767,739		$	72,974
Basic income per common share:
Income from continuing operations	$	1.35		$	0.07		$	1.42		$	0.17
Income from discontinued operations		0.00			0.02			1.33			0.04
Net income	$	1.35		$	0.09		$	2.75		$	0.21
Diluted income per common share: (c)
Income from continuing operations	$	1.14		$	0.07		$	1.25		$	0.16
Income from discontinued operations		0.00			0.02			1.12			0.05
Net income	$	1.14		$	0.09		$	2.37		$	0.21
Weighted-average shares outstanding used in computing income per common share:
Basic		256,688			348,261			279,234			341,747
Diluted		308,295			355,782			331,642			352,852

(a)	Adjusted EBITDA per diluted common share is based on the weighted-average shares outstanding used in computing diluted income per common share.
(b)	Reconciliation of Adjusted EBITDA to net income (see Annex A — Explanation of Non-GAAP Financial Measures).
(c)	Diluted income per common share for the three months and the year ended December 31, 2006 reflects the dilutive impact of the convertible notes.

EMDEON CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)

	December 31,
	2006		2005
Assets
Cash and cash equivalents	$	614,691	$	155,616
Short-term investments		34,140		267,387
Accounts receivable, net		121,608		195,317
Inventory		9,922		10,791
Prepaid expenses and other current assets		31,871		30,936
Due from EBS Master LLC		30,716		—
Assets of discontinued operations		—		254,247
Total current assets		842,948		914,294
Marketable equity securities		2,633		4,430
Property and equipment, net		72,040		95,686
Goodwill		337,669		895,975
Intangible assets, net		129,473		235,271
Investment in EBS Master LLC		1,521		—
Other assets		65,659		50,027
Total Assets	$	1,451,943	$	2,195,683
Liabilities and Stockholders’ Equity
Accounts payable	$	3,996	$	7,739
Accrued expenses		113,175		170,102
Deferred revenue		87,438		68,390
Liabilities of discontinued operations		—		68,436
Total current liabilities		204,609		314,667
Convertible notes		650,000		650,000
Other long-term liabilities		14,420		14,518
Minority interest in WebMD Health Corp.		102,294		43,229
Convertible redeemable exchangeable preferred stock		98,768		98,533
Stockholders’ equity		381,852		1,074,736
Total Liabilities and Stockholders’ Equity	$	1,451,943	$	2,195,683

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

	Years Ended
	December 31,
	2006			2005
Cash flows from operating activities:
Net income	$	767,739		$	72,974
Adjustments to reconcile net income to net cash provided by operating activities:
Income from discontinued operations, net of tax		(371,060	)		(16,265	)
Depreciation and amortization		61,976			60,905
Minority interest in WebMD Health Corp.		706			908
Equity in earnings of EBS Master LLC		(763	)		—
Amortization of debt issuance costs		2,906			2,541
Non-cash advertising		7,414			10,870
Non-cash stock-based compensation		44,955			4,880
Bad debt expense		1,627			2,527
Loss on investments		—			6,365
Gain on sale of EBS		(352,297	)		—
Loss on redemption of convertible debt		—			1,902
Reversal of income tax valuation allowance applied to goodwill		30,770			174
Changes in operating assets and liabilities:
Accounts receivable		(45,434	)		(30,021	)
Inventory		190			(755	)
Prepaid expenses and other, net		(12,131	)		2,629
Accounts payable		162			(6,212	)
Accrued expenses and other long-term liabilities		20,621			7,480
Deferred revenue		15,654			7,954
Net cash provided by continuing operations		173,035			128,856
Net cash provided by discontinued operations		25,985			32,430
Net cash provided by operating activities		199,020			161,286
Cash flows from investing activities:
Proceeds from maturities and sales of available-for-sale securities		928,284			1,063,606
Purchases of available-for-sale securities		(686,815	)		(758,687	)
Purchases of property and equipment		(54,885	)		(51,276	)
Proceeds received from sale of property and equipment		—			400
Cash paid in business combinations, net of cash acquired		(152,772	)		(93,712	)
Proceeds received from sale of EBS		1,199,872			—
Advance to EBS Master LLC		(20,016	)		—
Proceeds received from sale of discontinued operations		522,604			—
Other changes in equity of discontinued operations		28,279			23,176
Net cash provided by continuing operations		1,764,551			183,507
Net cash used in discontinued operations		(26,010	)		(34,575	)
Net cash provided by investing activities		1,738,541			148,932
Cash flows from financing activities:
Proceeds from issuance of Emdeon and WebMD Health common stock		156,078			48,571
Purchases of treasury stock under repurchase program		(83,167	)		(21,246	)
Purchases of treasury stock in Tender Offer		(1,552,120	)		(549,268	)
Payments of notes payable and other		(437	)		(631	)
Net proceeds from issuance of convertible debt		—			289,875
Issuance of WebMD Health Corp. Class A common stock		—			123,344
Redemption of convertible debt		—			(86,694	)
Net cash used in continuing operations		(1,479,646	)		(196,049	)
Net cash used in discontinued operations		—			—
Net cash used in financing activities		(1,479,646	)		(196,049	)
Effect of exchange rates on cash		1,135			(678	)
Net increase in cash and cash equivalents		459,050			113,491
Change in cash attributable to discontinued operations		25			2,145
Cash and cash equivalents at beginning of period		155,616			39,980
Cash and cash equivalents at end of period	$	614,691		$	155,616