HLTH 8-K Emdeon Announces Preliminary First Quarter Results

Exhibit 99.2

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

	Preliminary
	Three Months Ended
	March 31,
	2007			2006
Revenue:
Services	$	97,943		$	252,745
Products		24,082			24,449
Total revenue		122,025			277,194
Cost of operations:
Services		44,514			156,359
Products		9,915			10,815
Total cost of operations		54,429			167,174
Development and engineering		4,574			8,864
Sales, marketing, general and administrative		60,399			70,180
Depreciation and amortization		10,727			16,554
Legal expense		320			542
Interest income		9,674			4,418
Interest expense		4,717			4,691
Transition services income		2,456			—
Other income		746			—
(Loss) income from continuing operations before income tax provision		(265	)		13,607
Income tax provision		648			3,372
Minority interest in WHC income (loss)		115			(629	)
Equity in earnings of EBS Master LLC		7,099			—
Income from continuing operations		6,071			10,864
(Loss) income from discontinued operations, net of tax		(27	)		5,567
Net income	$	6,044		$	16,431
Basic income (loss) per common share:
Income from continuing operations	$	0.03		$	0.04
(Loss) income from discontinued operations		(0.00	)		0.02
Net income	$	0.03		$	0.06
Diluted income (loss) per common share:
Income from continuing operations	$	0.03		$	0.04
(Loss) income from discontinued operations		(0.00	)		0.02
Net income	$	0.03		$	0.06
Weighted-average shares outstanding used in computing income (loss) per common share:
Basic		176,011			287,195
Diluted		186,355			295,492

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

	Preliminary Three Months Ended
	March 31,
	2007			2006
Revenue
Emdeon Business Services	$	—		$	182,851
WebMD		72,962			50,051
ViPS		26,659			23,836
Porex		22,709			20,587
Inter-segment eliminations		(305	)		(131	)
	$	122,025		$	277,194
Earnings before interest, taxes, non-cash and other items (“Adjusted EBITDA”)
Emdeon Business Services	$	—		$	38,207
WebMD		12,607			6,527
ViPS		4,840			5,158
Porex		6,474			5,554
Corporate		(6,731	)		(11,138	)
	$	17,190		$	44,308
Adjusted EBITDA per diluted common share (a)	$	0.09		$	0.15
Interest, taxes, non-cash and other items (b)
Depreciation and amortization	$	(10,727	)	$	(16,554	)
Non-cash stock-based compensation		(9,791	)		(11,727	)
Non-cash advertising		(2,320	)		(1,605	)
Legal expense		(320	)		(542	)
Interest income		9,674			4,418
Interest expense		(4,717	)		(4,691	)
Income tax provision		(648	)		(3,372	)
Minority interest in WHC (income) loss		(115	)		629
Equity in earnings of EBS Master LLC		7,099			—
Other income		746			—
Income from continuing operations		6,071			10,864
(Loss) income from discontinued operations, net of tax		(27	)		5,567
Net income	$	6,044		$	16,431
Basic income (loss) per common share:
Income from continuing operations	$	0.03		$	0.04
(Loss) income from discontinued operations		(0.00	)		0.02
Net income	$	0.03		$	0.06
Diluted income (loss) per common share:
Income from continuing operations	$	0.03		$	0.04
(Loss) income from discontinued operations		(0.00	)		0.02
Net income	$	0.03		$	0.06
Weighted-average shares outstanding used in computing income (loss) per common share:
Basic		176,011			287,195
Diluted		186,355			295,492

(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).

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

	Preliminary
	March 31, 2007		December 31, 2006
Assets
Cash and cash equivalents	$	668,558	$	614,691
Short-term investments		32,386		34,140
Accounts receivable, net		120,999		121,608
Inventory		10,478		9,922
Due from EBS Master LLC		325		30,716
Prepaid expenses and other current assets		53,452		31,871
Total current assets		886,198		842,948
Marketable equity securities		2,543		2,633
Property and equipment, net		73,147		72,040
Goodwill		337,677		337,669
Intangible assets, net		123,369		129,473
Investment in EBS Master LLC		9,534		1,521
Other assets		40,033		65,659
Total Assets	$	1,472,501	$	1,451,943
Liabilities and Stockholders’ Equity
Accounts payable	$	2,970	$	3,996
Accrued expenses		49,611		113,175
Deferred revenue		95,117		87,438
Total current liabilities		147,698		204,609
Convertible notes		650,000		650,000
Other long-term liabilities		21,446		14,420
Minority interest in WebMD Health Corp. (WHC)		106,944		102,294
Convertible redeemable exchangeable preferred stock		98,826		98,768
Stockholders’ equity		447,587		381,852
Total Liabilities and Stockholders’ Equity	$	1,472,501	$	1,451,943

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

	Preliminary
	Three Months Ended
	March 31,
	2007			2006
Cash flows from operating activities:
Net income	$	6,044		$	16,431
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Loss (income) from discontinued operations, net of tax		27			(5,567	)
Depreciation and amortization		10,727			16,554
Minority interest in WHC income (loss)		115			(629	)
Equity in earnings of EBS Master LLC		(7,099	)		—
Amortization of debt issuance costs		721			728
Non-cash advertising		2,320			1,605
Non-cash stock-based compensation		9,791			11,727
EBS working capital adjustment		(399	)		—
Reversal of income tax valuation allowance applied to goodwill		250			1,669
Changes in operating assets and liabilities:
Accounts receivable		1,418			(2,666	)
Inventory		(505	)		241
Prepaid expenses and other, net		324			(951	)
Accounts payable		(1,027	)		(117	)
Accrued expenses and other long-term liabilities		(47,684	)		(4,407	)
Deferred revenue		7,679			10,951
Net cash (used in) provided by continuing operations		(17,298	)		45,569
Net cash provided by discontinued operations		—			1,192
Net cash (used in) provided by operating activities		(17,298	)		46,761
Cash flows from investing activities:
Proceeds from maturities and sales of available-for-sale securities		67,922			166,228
Purchases of available-for-sale securities		(65,932	)		(137,815	)
Purchases of property and equipment		(5,627	)		(13,248	)
Cash paid in business combinations, net of cash acquired		—			(27,328	)
Proceeds from the sale of EBS		2,898			—
Proceeds from advances to EBS Master LLC		19,691			—
Other changes in equity of discontinued operations		—			1,588
Net cash provided by (used in) continuing operations		18,952			(10,575	)
Net cash used in discontinued operations		—			(2,508	)
Net cash provided by (used in) investing activities		18,952			(13,083	)
Cash flows from financing activities:
Proceeds from issuance of Emdeon and WebMD Health common stock		63,404			10,565
Purchases of treasury stock under repurchase program		(11,322	)		(66,633	)
Payments of notes payable and other		(53	)		(94	)
Net cash provided by (used in) financing activities		52,029			(56,162	)
Effect of exchange rates on cash		184			119
Net increase (decrease) in cash and cash equivalents		53,867			(22,365	)
Change in cash attributable to discontinued operations		—			1,316
Cash and cash equivalents at beginning of period		614,691			155,616
Cash and cash equivalents at end of period	$	668,558		$	134,567