HLTH 8-K HLTH Corporation Announces Third Quarter Financial Results

Exhibit 99.2

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

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2007		2006			2007			2006
			(Restated)						(Restated)
Revenue:
Services	$	108,804	$	274,158		$	308,876		$	792,509
Products		24,504		25,574			75,751			76,048
Total revenue		133,308		299,732			384,627			868,557
Cost of operations:
Services		43,737		158,967			132,380			472,951
Products		9,603		10,743			30,290			32,974
Total cost of operations		53,340		169,710			162,670			505,925
Development and engineering		4,209		9,243			13,550			27,164
Sales, marketing, general and administrative		57,352		74,390			176,091			216,603
Depreciation and amortization		11,826		18,189			34,231			51,964
Legal expense		373		1,023			1,164			1,840
Interest income		10,864		6,599			30,638			15,450
Interest expense		4,573		4,723			13,909			14,082
Transition services income, net		985		340			4,909			340
Other income (expense)		377		(2,126	)		1,522			(4,198	)
Income from continuing operations before income tax provision		13,861		27,267			20,081			62,571
Income tax provision		3,935		4,779			6,956			15,123
Minority interest in WHC income (loss)		1,800		69			2,758			(524	)
Equity in earnings of EBS Master LLC		8,005		—			22,679			—
Income from continuing operations		16,131		22,419			33,046			47,972
Income (loss) from discontinued operations, net of tax		440		358,048			(56,236	)		370,171
Net income (loss)	$	16,571	$	380,467		$	(23,190	)	$	418,143
Basic income (loss) per common share:
Income from continuing operations	$	0.09	$	0.08		$	0.19		$	0.17
Income (loss) from discontinued operations		0.00		1.24			(0.32	)		1.29
Net income (loss)	$	0.09	$	1.32		$	(0.13	)	$	1.46
Diluted income (loss) per common share:
Income from continuing operations	$	0.08	$	0.07		$	0.17		$	0.16
Income (loss) from discontinued operations		0.01		1.20			(0.30	)		1.25
Net income (loss)	$	0.09	$	1.27		$	(0.13	)	$	1.41
Weighted-average shares outstanding used in computing income (loss) per common share:
Basic		179,811		287,967			178,681			286,749
Diluted		188,071		300,012			188,486			297,409

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2007			2006			2007			2006
				(Restated)						(Restated)
Revenue
Emdeon Business Services	$	—		$	187,266		$	—		$	557,975
WebMD		87,198			66,645			238,639			173,308
ViPS		24,307			24,843			76,851			73,524
Porex		21,867			21,298			69,579			64,544
Inter-segment eliminations		(64	)		(320	)		(442	)		(794	)
	$	133,308		$	299,732		$	384,627		$	868,557
Earnings before interest, taxes, non-cash and other items (“Adjusted EBITDA”)
Emdeon Business Services	$	—		$	44,547		$	—		$	127,519
WebMD		24,077			14,633			51,839			30,759
ViPS		4,809			5,302			14,743			15,517
Porex		6,445			6,133			20,262			18,732
Corporate		(6,053	)		(11,000	)		(19,267	)		(33,633	)
	$	29,278		$	59,615		$	67,577		$	158,894
Adjusted EBITDA per diluted common share (a)	$	0.16		$	0.20		$	0.36		$	0.53
Interest, taxes, non-cash and other items (b)
Depreciation and amortization	$	(11,826	)	$	(18,189	)	$	(34,231	)	$	(51,964	)
Non-cash stock-based compensation		(9,717	)		(11,226	)		(27,863	)		(35,235	)
Non-cash advertising		(169	)		(1,660	)		(2,489	)		(4,454	)
Legal expense		(373	)		(1,023	)		(1,164	)		(1,840	)
Interest income		10,864			6,599			30,638			15,450
Interest expense		(4,573	)		(4,723	)		(13,909	)		(14,082	)
Income tax provision		(3,935	)		(4,779	)		(6,956	)		(15,123	)
Minority interest in WHC (income) loss		(1,800	)		(69	)		(2,758	)		524
Equity in earnings of EBS Master LLC		8,005			—			22,679			—
Other income (expense)		377			(2,126	)		1,522			(4,198	)
Income from continuing operations		16,131			22,419			33,046			47,972
Income (loss) from discontinued operations, net of tax		440			358,048			(56,236	)		370,171
Net income (loss)	$	16,571		$	380,467		$	(23,190	)	$	418,143
Basic income (loss) per common share:
Income from continuing operations	$	0.09		$	0.08		$	0.19		$	0.17
Income (loss) from discontinued operations		0.00			1.24			(0.32	)		1.29
Net income (loss)	$	0.09		$	1.32		$	(0.13	)	$	1.46
Diluted income (loss) per common share:
Income from continuing operations	$	0.08		$	0.07		$	0.17		$	0.16
Income (loss) from discontinued operations		0.01			1.20			(0.30	)		1.25
Net income (loss)	$	0.09		$	1.27		$	(0.13	)	$	1.41
Weighted-average shares outstanding used in computing income (loss) per common share:
Basic		179,811			287,967			178,681			286,749
Diluted		188,071			300,012			188,486			297,409

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

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

	September 30, 2007		December 31, 2006
Assets
Cash and cash equivalents	$	412,330	$	614,691
Short-term investments		372,128		34,140
Accounts receivable, net		104,014		121,608
Inventory		10,199		9,922
Due from EBS Master LLC		95		30,716
Prepaid expenses and other current assets		54,804		31,871
Total current assets		953,570		842,948
Marketable equity securities		2,634		2,633
Property and equipment, net		74,644		72,040
Goodwill		332,689		337,669
Intangible assets, net		115,083		129,473
Investment in EBS Master LLC		23,169		1,521
Other assets		36,203		65,659
Total Assets	$	1,537,992	$	1,451,943
Liabilities and Stockholders’ Equity
Accounts payable	$	2,815	$	3,996
Accrued expenses		56,483		113,175
Deferred revenue		91,837		87,438
Liabilities of discontinued operations		48,434		—
Total current liabilities		199,569		204,609
Convertible notes		650,000		650,000
Other long-term liabilities		33,881		24,179
Minority interest in WebMD Health Corp. (WHC)		119,785		101,860
Convertible redeemable exchangeable preferred stock		—		98,768
Stockholders’ equity		534,757		372,527
Total Liabilities and Stockholders’ Equity	$	1,537,992	$	1,451,943

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

	Nine Months Ended
	September 30,
	2007			2006
				(Restated)
Cash flows from operating activities:
Net (loss) income	$	(23,190	)	$	418,143
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Loss (income) from discontinued operations, net of tax		56,236			(370,171	)
Depreciation and amortization		34,231			51,964
Minority interest in WHC income (loss)		2,758			(524	)
Equity in earnings of EBS Master LLC		(22,679	)		—
Amortization of debt issuance costs		2,179			2,190
Non-cash advertising		2,489			4,454
Non-cash stock-based compensation		27,863			35,235
Deferred income taxes		2,345			3,041
EBS working capital adjustment		(399	)		—
Reversal of income tax valuation allowance applied to goodwill		1,676			5,307
Changes in operating assets and liabilities:
Accounts receivable		18,042			(18,760	)
Inventory		(88	)		601
Prepaid expenses and other, net		(1,783	)		(9,701	)
Accounts payable		(1,181	)		825
Accrued expenses and other long-term liabilities		(46,333	)		3,284
Deferred revenue		4,399			9,926
Net cash provided by continuing operations		56,565			135,814
Net cash (used in) provided by discontinued operations		(9,339	)		25,985
Net cash provided by operating activities		47,226			161,799
Cash flows from investing activities:
Proceeds from maturities and sales of available-for-sale securities		356,492			831,145
Purchases of available-for-sale securities		(694,522	)		(632,955	)
Purchases of property and equipment		(18,112	)		(38,231	)
Cash paid in business combinations, net of cash acquired		(100	)		(119,635	)
Proceeds from the sale of EBS, net		2,898			—
Proceeds from advances to EBS Master LLC		19,921			—
Proceeds from the sale of discontinued operations		11,667			524,245
Other changes in equity of discontinued operations		—			28,279
Net cash (used in) provided by continuing operations		(321,756	)		592,848
Net cash used in discontinued operations		—			(26,010	)
Net cash (used in) provided by investing activities		(321,756	)		566,838
Cash flows from financing activities:
Proceeds from issuance of HLTH and WHC common stock		114,077			62,768
Tax benefit on stock-based awards		4,318			—
Purchases of treasury stock under repurchase program		(47,120	)		(71,843	)
Payments of notes payable and other		(148	)		(359	)
Net cash provided by (used in) financing activities		71,127			(9,434	)
Effect of exchange rates on cash		1,042			616
Net (decrease) increase in cash and cash equivalents		(202,361	)		719,819
Change in cash of discontinued operations		—			25
Cash and cash equivalents at beginning of period		614,691			155,616
Cash and cash equivalents at end of period	$	412,330		$	875,460