HLTH 8-K HLTH Corporation Announces Fourth Quarter Financial Results

EXHIBIT 99.2

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

	Three Months Ended					Years Ended
	December 31,					December 31,
	2007			2006		2007			2006
Revenue:
Services	$	122,135		$	205,743	$	430,930		$	998,016
Products		23,680			23,120		96,185			95,487
Total revenue		145,815			228,863		527,115			1,093,503
Cost of operations:
Services		43,696			107,393		174,552			578,544
Products		9,302			9,163		38,003			40,502
Total cost of operations		52,998			116,556		212,555			619,046
Development and engineering		4,505			6,485		18,055			33,649
Sales, marketing, general and administrative		58,542			71,412		234,633			288,015
Depreciation and amortization		11,796			10,010		46,023			61,968
Interest income		11,397			16,889		42,035			32,339
Interest expense		4,610			4,697		18,519			18,779
Gain on sale of EBS		—			352,297		399			352,297
Other (expense) income, net		(1,804	)		1,446		3,064			(4,252	)
Income from continuing operations before income tax (benefit) provision		22,957			390,335		42,828			452,430
Income tax (benefit) provision		(20,554	)		37,193		(13,598	)		52,316
Minority interest in WHC		7,909			929		10,667			405
Equity in earnings of EBS Master LLC		5,887			763		28,566			763
Income from continuing operations		41,489			352,976		74,325			400,472
Income (loss) from discontinued operations, net of tax		1,580			798		(54,446	)		371,445
Net income	$	43,069		$	353,774	$	19,879		$	771,917
Basic income (loss) per common share:
Income from continuing operations	$	0.23		$	1.38	$	0.42		$	1.44
Income (loss) from discontinued operations		0.01			0.00		(0.31	)		1.33
Net income	$	0.24		$	1.38	$	0.11		$	2.77
Diluted income (loss) per common share:
Income from continuing operations	$	0.19		$	1.16	$	0.38		$	1.26
Income (loss) from discontinued operations		0.01			0.00		(0.26	)		1.12
Net income	$	0.20		$	1.16	$	0.12		$	2.38
Weighted-average shares outstanding used in computing income (loss) per common share:
Basic		181,280			256,688		179,330			279,234
Diluted		231,609			308,295		211,505			331,642

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

	Three Months Ended						Years Ended
	December 31,						December 31,
	2007			2006			2007			2006
Revenue
Emdeon Business Services	$	—		$	103,116		$	—		$	661,090
WebMD		96,642			79,385			331,954			248,776
ViPS		26,232			25,349			103,083			98,874
Porex		23,002			21,158			92,581			85,702
Inter-segment eliminations		(61	)		(145	)		(503	)		(939	)
	$	145,815		$	228,863		$	527,115		$	1,093,503
Earnings before interest, taxes, non-cash and other items (“Adjusted EBITDA”)
Emdeon Business Services	$	—		$	25,392		$	—		$	152,911
WebMD		33,072			22,409			84,697			52,686
ViPS		6,269			5,012			21,012			20,529
Porex		6,812			6,242			27,074			24,974
Corporate		(5,844	)		(9,781	)		(25,111	)		(43,414	)
	$	40,309		$	49,274		$	107,672		$	207,686
Adjusted EBITDA per diluted common share (a)	$	0.17		$	0.16		$	0.51		$	0.63
Interest, taxes, non-cash and other items (b)
Depreciation and amortization	$	(11,796	)	$	(10,010	)	$	(46,023	)	$	(61,968	)
Non-cash stock-based compensation		(6,840	)		(9,720	)		(34,703	)		(44,955	)
Non-cash advertising		(2,775	)		(2,960	)		(5,264	)		(7,414	)
Interest income		11,397			16,889			42,035			32,339
Interest expense		(4,610	)		(4,697	)		(18,519	)		(18,779	)
Income tax benefit (provision)		20,554			(37,193	)		13,598			(52,316	)
Minority interest in WHC		(7,909	)		(929	)		(10,667	)		(405	)
Equity in earnings of EBS Master LLC		5,887			763			28,566			763
Gain on sale of EBS		—			352,297			399			352,297
Other expense, net		(2,728	)		(738	)		(2,769	)		(6,776	)
Income from continuing operations		41,489			352,976			74,325			400,472
Income (loss) from discontinued operations, net of tax		1,580			798			(54,446	)		371,445
Net income	$	43,069		$	353,774		$	19,879		$	771,917
Basic income (loss) per common share:
Income from continuing operations	$	0.23		$	1.38		$	0.42		$	1.44
Income (loss) from discontinued operations		0.01			0.00			(0.31	)		1.33
Net income	$	0.24		$	1.38		$	0.11		$	2.77
Diluted income (loss) per common share:
Income from continuing operations	$	0.19		$	1.16		$	0.38		$	1.26
Income (loss) from discontinued operations		0.01			0.00			(0.26	)		1.12
Net income	$	0.20		$	1.16		$	0.12		$	2.38
Weighted-average shares outstanding used in computing income (loss) per common share:
Basic		181,280			256,688			179,330			279,234
Diluted		231,609			308,295			211,505			331,642

(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 (see Annex A — Explanation of Non-GAAP Financial Measures).

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

	December 31,
	2007		2006
Assets
Cash and cash equivalents	$	536,879	$	614,691
Short-term investments		290,858		34,140
Accounts receivable, net		116,243		121,608
Inventory		11,772		9,922
Due from EBS Master LLC		1,224		30,716
Prepaid expenses and other current assets		74,794		31,871
Total current assets		1,031,770		842,948
Marketable equity securities		2,383		2,633
Property and equipment, net		74,750		72,040
Goodwill		331,859		337,669
Intangible assets, net		109,001		129,473
Investment in EBS Master LLC		25,261		1,521
Other assets		35,541		65,659
Total Assets	$	1,610,565	$	1,451,943
Liabilities and Stockholders’ Equity
Accounts payable	$	3,280	$	3,996
Accrued expenses		61,427		113,175
Deferred revenue		87,384		85,793
Liabilities of discontinued operations		55,563		1,645
Total current liabilities		207,654		204,609
Convertible notes		650,000		650,000
Other long-term liabilities		21,781		24,179
Minority interest in WHC		131,353		101,860
Convertible redeemable exchangeable preferred stock		—		98,768
Stockholders’ equity		599,777		372,527
Total Liabilities and Stockholders’ Equity	$	1,610,565	$	1,451,943

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

	Years Ended
	December 31,
	2007			2006
Cash flows from operating activities:
Net income	$	19,879		$	771,917
Adjustments to reconcile net income to net cash provided by operating activities:
Loss (income) from discontinued operations, net of tax		54,446			(371,445	)
Depreciation and amortization		46,023			61,968
Minority interest in WHC		10,667			405
Equity in earnings of EBS Master LLC		(28,566	)		(763	)
Amortization of debt issuance costs		2,916			2,906
Non-cash advertising		5,264			7,414
Non-cash stock-based compensation		34,703			44,955
Deferred income taxes		(18,228	)		26,893
Gain on sale of EBS		(399	)		(352,297	)
Changes in operating assets and liabilities:
Accounts receivable		5,928			(43,807	)
Inventory		(1,611	)		190
Prepaid expenses and other, net		4,559			(12,302	)
Accounts payable		(716	)		162
Accrued expenses and other long-term liabilities		(42,888	)		20,621
Deferred revenue		1,590			15,913
Net cash provided by continuing operations		93,567			172,730
Net cash (used in) provided by discontinued operations		(18,174	)		26,290
Net cash provided by operating activities		75,393			199,020
Cash flows from investing activities:
Proceeds from maturities and sales of available-for-sale securities		670,326			928,284
Purchases of available-for-sale securities		(927,038	)		(686,815	)
Purchases of property and equipment		(23,694	)		(54,885	)
Cash paid in business combinations, net of cash acquired		(100	)		(152,772	)
Proceeds from the sale of EBS, net		2,898			1,199,872
Proceeds from advances to EBS Master LLC		18,792			(20,016	)
Proceeds from the sale of discontinued operations		11,667			522,604
Other changes in equity of discontinued operations		—			28,279
Net cash (used in) provided by continuing operations		(247,149	)		1,764,551
Net cash used in discontinued operations		—			(26,010	)
Net cash (used in) provided by investing activities		(247,149	)		1,738,541
Cash flows from financing activities:
Proceeds from issuance of HLTH and WHC common stock		133,033			156,078
Tax benefit on stock-based awards		6,601			—
Purchases of treasury stock under repurchase program		(47,102	)		(83,167	)
Purchases of treasury stock in tender offer		—			(1,552,120	)
Payments of notes payable and other		(195	)		(437	)
Net cash provided by (used in) financing activities		92,337			(1,479,646	)
Effect of exchange rates on cash		1,607			1,135
Net (decrease) increase in cash and cash equivalents		(77,812	)		459,050
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	$	536,879		$	614,691