HLTH 8-K HLTH Corporation Announces Second Quarter Results

Exhibit 99.2

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2007			2006			2007			2006
				(Restated)						(Restated)
Revenue:
Services	$	102,129		$	265,606		$	200,072		$	518,351
Products		27,165			26,025			51,247			50,474
Total revenue		129,294			291,631			251,319			568,825
Cost of operations:
Services		44,129			157,625			88,643			313,984
Products		10,772			11,416			20,687			22,231
Total cost of operations		54,901			169,041			109,330			336,215
Development and engineering		4,767			9,057			9,341			17,921
Sales, marketing, general and administrative		58,340			72,033			118,739			142,213
Depreciation and amortization		11,678			17,221			22,405			33,775
Legal expense		471			275			791			817
Interest income		10,100			4,433			19,774			8,851
Interest expense		4,619			4,668			9,336			9,359
Transition services income		1,468			—			3,924			—
Other income (expense)		399			(2,072	)		1,145			(2,072	)
Income from continuing operations before income tax provision		6,485			21,697			6,220			35,304
Income tax provision		2,031			6,288			3,021			10,344
Minority interest in WHC income (loss)		843			(121	)		958			(593	)
Equity in earnings of EBS Master LLC		7,575			—			14,674			—
Income from continuing operations		11,186			15,530			16,915			25,553
(Loss) income from discontinued operations, net of tax		(56,649	)		6,556			(56,676	)		12,123
Net (loss) income	$	(45,463	)	$	22,086		$	(39,761	)	$	37,676
Basic (loss) income per common share:
Income from continuing operations	$	0.06		$	0.05		$	0.10		$	0.09
(Loss) income from discontinued operations		(0.31	)		0.03			(0.32	)		0.04
Net (loss) income	$	(0.25	)	$	0.08		$	(0.22	)	$	0.13
Diluted (loss) income per common share:
Income from continuing operations	$	0.06		$	0.05		$	0.09		$	0.09
(Loss) income from discontinued operations		(0.30	)		0.02			(0.30	)		0.04
Net (loss) income	$	(0.24	)	$	0.07		$	(0.21	)	$	0.13
Weighted-average shares outstanding used in computing (loss) income per common share:
Basic		180,219			285,086			178,115			286,141
Diluted		191,032			296,722			188,693			296,107

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2007			2006			2007			2006
				(Restated)						(Restated)
Revenue
Emdeon Business Services	$	—		$	187,858		$	—		$	370,709
WebMD		78,479			56,612			151,441			106,663
ViPS		25,885			24,845			52,544			48,681
Porex		25,003			22,659			47,712			43,246
Inter-segment eliminations		(73	)		(343	)		(378	)		(474	)
	$	129,294		$	291,631		$	251,319		$	568,825
Earnings before interest, taxes, non-cash and other items (“Adjusted EBITDA”)
Emdeon Business Services	$	—		$	44,765		$	—		$	82,972
WebMD		15,155			9,599			27,762			16,126
ViPS		5,094			5,057			9,934			10,215
Porex		7,343			7,045			13,817			12,599
Corporate		(6,483	)		(11,495	)		(13,214	)		(22,633	)
	$	21,109		$	54,971		$	38,299		$	99,279
Adjusted EBITDA per diluted common share (a)	$	0.11		$	0.19		$	0.20		$	0.34
Interest, taxes, non-cash and other items (b)
Depreciation and amortization	$	(11,678	)	$	(17,221	)	$	(22,405	)	$	(33,775	)
Non-cash stock-based compensation		(8,355	)		(12,282	)		(18,146	)		(24,009	)
Non-cash advertising		—			(1,189	)		(2,320	)		(2,794	)
Legal expense		(471	)		(275	)		(791	)		(817	)
Interest income		10,100			4,433			19,774			8,851
Interest expense		(4,619	)		(4,668	)		(9,336	)		(9,359	)
Income tax provision		(2,031	)		(6,288	)		(3,021	)		(10,344	)
Minority interest in WHC (income) loss		(843	)		121			(958	)		593
Equity in earnings of EBS Master LLC		7,575			—			14,674			—
Other income (expense)		399			(2,072	)		1,145			(2,072	)
Income from continuing operations		11,186			15,530			16,915			25,553
(Loss) income from discontinued operations, net of tax		(56,649	)		6,556			(56,676	)		12,123
Net (loss) income	$	(45,463	)	$	22,086		$	(39,761	)	$	37,676
Basic (loss) income per common share:
Income from continuing operations	$	0.06		$	0.05		$	0.10		$	0.09
(Loss) income from discontinued operations		(0.31	)		0.03			(0.32	)		0.04
Net (loss) income	$	(0.25	)	$	0.08		$	(0.22	)	$	0.13
Diluted (loss) income per common share:
Income from continuing operations	$	0.06		$	0.05		$	0.09		$	0.09
(Loss) income from discontinued operations		(0.30	)		0.02			(0.30	)		0.04
Net (loss) income	$	(0.24	)	$	0.07		$	(0.21	)	$	0.13
Weighted-average shares outstanding used in computing (loss) income per common share:
Basic		180,219			285,086			178,115			286,141
Diluted		191,032			296,722			188,693			296,107

(a)	Adjusted EBITDA per diluted common share is based on the weighted-average shares outstanding used in computing diluted (loss) income per common share.
(b)	Reconciliation of Adjusted EBITDA to net (loss) income (see Annex A — Explanation of Non-GAAP Financial Measures).

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

	June 30, 2007		December 31, 2006
Assets
Cash and cash equivalents	$	509,969	$	614,691
Short-term investments		228,922		34,140
Accounts receivable, net		117,045		121,608
Inventory		9,709		9,922
Due from EBS Master LLC		286		30,716
Prepaid expenses and other current assets		62,232		31,871
Total current assets		928,163		842,948
Marketable equity securities		3,166		2,633
Property and equipment, net		74,376		72,040
Goodwill		333,412		337,669
Intangible assets, net		121,260		129,473
Investment in EBS Master LLC		20,820		1,521
Other assets		39,607		65,659
Total Assets	$	1,520,804	$	1,451,943
Liabilities and Stockholders’ Equity
Accounts payable	$	3,960	$	3,996
Accrued expenses		58,043		113,175
Deferred revenue		100,154		87,438
Liabilities of discontinued operations		55,893		—
Total current liabilities		218,050		204,609
Convertible notes		650,000		650,000
Other long-term liabilities		32,357		24,179
Minority interest in WebMD Health Corp. (WHC)		111,876		101,860
Convertible redeemable exchangeable preferred stock		—		98,768
Stockholders’ equity		508,521		372,527
Total Liabilities and Stockholders’ Equity	$	1,520,804	$	1,451,943

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

	Six Months Ended
	June 30,
	2007			2006
				(Restated)
Cash flows from operating activities:
Net (loss) income	$	(39,761	)	$	37,676
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Loss (income) from discontinued operations, net of tax		56,676			(12,123	)
Depreciation and amortization		22,405			33,775
Minority interest in WHC income (loss)		958			(593	)
Equity in earnings of EBS Master LLC		(14,674	)		—
Amortization of debt issuance costs		1,447			1,461
Non-cash advertising		2,320			2,794
Non-cash stock-based compensation		18,146			24,009
Deferred income taxes		1,052			1,736
EBS working capital adjustment		(399	)		—
Reversal of income tax valuation allowance applied to goodwill		760			4,043
Changes in operating assets and liabilities:
Accounts receivable		4,922			(5,233	)
Inventory		272			(138	)
Prepaid expenses and other, net		(514	)		(3,700	)
Accounts payable		(36	)		3,980
Accrued expenses and other long-term liabilities		(45,430	)		3,572
Deferred revenue		12,716			8,137
Net cash provided by continuing operations		20,860			99,396
Net cash (used in) provided by discontinued operations		(1,880	)		15,825
Net cash provided by operating activities		18,980			115,221
Cash flows from investing activities:
Proceeds from maturities and sales of available-for-sale securities		194,096			398,870
Purchases of available-for-sale securities		(388,942	)		(426,470	)
Purchases of property and equipment		(12,558	)		(27,429	)
Cash paid in business combinations, net of cash acquired		—			(84,846	)
Proceeds from the sale of EBS		2,898			—
Proceeds from advances to EBS Master LLC		19,730			—
Other changes in equity of discontinued operations		—			15,467
Net cash used in continuing operations		(184,776	)		(124,408	)
Net cash used in discontinued operations		—			(17,009	)
Net cash used in investing activities		(184,776	)		(141,417	)
Cash flows from financing activities:
Proceeds from issuance of HLTH and WHC common stock		103,263			30,433
Tax benefit on stock-based awards		457			—
Purchases of treasury stock under repurchase program		(42,906	)		(71,843	)
Payments of notes payable and other		(101	)		(173	)
Net cash provided by (used in) financing activities		60,713			(41,583	)
Effect of exchange rates on cash		361			479
Net decrease in cash and cash equivalents		(104,722	)		(67,300	)
Change in cash of discontinued operations		—			1,184
Cash and cash equivalents at beginning of period		614,691			155,616
Cash and cash equivalents at end of period	$	509,969		$	89,500