HLTH 8-K HLTH Corporation Announces First Quarter Financial Results

EXHIBIT 99.2

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

	Three Months Ended
	March 31,
	2008			2007
Revenue	$	81,682		$	71,881
Costs and expenses:
Cost of operations		31,570			28,618
Sales and marketing		25,830			22,870
General and administrative		21,144			28,443
Depreciation and amortization		6,888			6,325
Interest income		11,936			9,674
Interest expense		4,607			4,709
Gain on sale of EBS Master LLC		538,024			—
Impairment of auction rate securities		60,108			—
Transition services income, net		50			2,456
Other (expense) income, net		(4,194	)		426
Income (loss) from continuing operations before income tax provision (benefit)		477,351			(6,528	)
Income tax provision (benefit)		25,614			(231	)
Minority interest in WHC (loss) income		(3,845	)		115
Equity in earnings of EBS Master LLC		4,007			7,099
Income from continuing operations		459,589			687
Income from discontinued operations (net of tax $2,910 and $1,221 in 2008 and 2007)		3,569			5,015
Net income	$	463,158		$	5,702
Basic income per common share:
Income from continuing operations	$	2.52		$	0.00
Income from discontinued operations		0.02			0.03
Net income	$	2.54		$	0.03
Diluted income per common share:
Income from continuing operations	$	2.03		$	0.00
Income from discontinued operations		0.01			0.03
Net income	$	2.04		$	0.03
Weighted-average shares outstanding used in computing income per common share:
Basic		182,175			176,011
Diluted		228,159			186,355

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

	Three Months Ended
	March 31,
	2008			2007
Revenue
WebMD Online Services:
Advertising and sponsorship	$	56,065		$	47,421
Licensing		21,923			20,115
Content syndication and other		417			884
Total WebMD Online Services		78,405			68,420
WebMD Publishing and Other Services		3,277			3,524
Inter-segment eliminations		—			(63	)
	$	81,682		$	71,881
Earnings (loss) before interest, taxes, non-cash and other items (“Adjusted EBITDA”)
WebMD Online Services	$	16,531		$	12,992
WebMD Publishing and Other Services		(754	)		(358	)
Corporate		(5,059	)		(6,726	)
	$	10,718		$	5,908
Adjusted EBITDA per diluted common share (a)	$	0.05		$	0.03
Interest, taxes, non-cash and other items (b)
Depreciation and amortization	$	(6,888	)	$	(6,325	)
Non-cash stock-based compensation		(5,972	)		(9,182	)
Non-cash advertising		(1,558	)		(2,320	)
Interest income		11,936			9,674
Interest expense		(4,607	)		(4,709	)
Gain on sale of EBS Master LLC		538,024			—
Income tax (provision) benefit		(25,614	)		231
Minority interest in WHC loss (income)		3,845			(115	)
Equity in earnings of EBS Master LLC		4,007			7,099
Impairment of auction rate securities		(60,108	)		—
Other (expense) income, net		(4,194	)		426
Income from continuing operations		459,589			687
Income from discontinued operations, net of tax		3,569			5,015
Net income	$	463,158		$	5,702
Basic income per common share:
Income from continuing operations	$	2.52		$	0.00
Income from discontinued operations		0.02			0.03
Net income	$	2.54		$	0.03
Diluted income per common share:
Income from continuing operations	$	2.03		$	0.00
Income from discontinued operations		0.01			0.03
Net income	$	2.04		$	0.03
Weighted-average shares outstanding used in computing income per common share:
Basic		182,175			176,011
Diluted		228,159			186,355

(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).

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

	Three Months Ended
	March 31,
	2008			2007
Cash flows from operating activities:
Net income	$	463,158		$	5,702
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Income from discontinued operations, net of tax		(3,569	)		(5,015	)
Depreciation and amortization		6,888			6,325
Minority interest in WHC (loss) income		(3,845	)		115
Equity in earnings of EBS Master LLC		(4,007	)		(7,099	)
Amortization of debt issuance costs		743			721
Non-cash advertising		1,558			2,320
Non-cash stock-based compensation		5,972			9,182
Deferred income taxes		5,389			2
Gain on sale of EBS		(538,024	)		(399	)
Impairment of auction rate securities		60,108			—
Changes in operating assets and liabilities:
Accounts receivable		12,220			2,185
Prepaid expenses and other, net		17,493			421
Accrued expenses and other long-term liabilities		10,320			(46,158	)
Deferred revenue		11,714			7,678
Net cash provided by (used in) continuing operations		46,118			(24,020	)
Net cash (used in) provided by discontinued operations		(3,751	)		6,712
Net cash provided by (used in) operating activities		42,367			(17,308	)
Cash flows from investing activities:
Proceeds from maturities and sales of available-for-sale securities		104,518			67,922
Purchases of available-for-sale securities		(177,150	)		(65,932	)
Purchases of property and equipment		(2,662	)		(4,780	)
Proceeds related to sales of EBS, EPS and ACS/ACP, net of fees		598,935			2,898
Decrease in net advances to EBS Master LLC		1,195			19,691
Net cash provided by continuing operations		524,836			19,799
Net cash used in discontinued operations		(1,438	)		(847	)
Net cash provided by investing activities		523,398			18,952
Cash flows from financing activities:
Proceeds from issuance of HLTH and WHC common stock		1,777			63,404
Purchases of treasury stock under repurchase program		—			(11,322	)
Net cash provided by continuing operations		1,777			52,082
Net cash used in discontinued operations		(46	)		(43	)
Net cash provided by financing activities		1,731			52,039
Effect of exchange rates on cash		1,753			184
Net increase in cash and cash equivalents		569,249			53,867
Cash and cash equivalents at beginning of period		536,879			614,691
Cash and cash equivalents at end of period	$	1,106,128		$	668,558

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

	March 31, 2008		December 31, 2007
Assets
Cash and cash equivalents	$	1,106,128	$	536,879
Marketable securities		309,256		290,858
Accounts receivable, net		73,861		86,081
Due from EBS Master LLC		28		1,224
Prepaid expenses and other current assets		27,781		71,090
Assets of discontinued operations		266,591		262,964
Total current assets		1,783,645		1,249,096
Marketable equity securities		2,036		2,383
Property and equipment, net		47,883		49,554
Goodwill		214,623		217,323
Intangible assets, net		33,766		36,314
Investment in EBS Master LLC		—		25,261
Other assets		59,922		71,466
Total Assets	$	2,141,875	$	1,651,397
Liabilities and Stockholders’ Equity
Accrued expenses	$	59,002	$	49,598
Deferred revenue		88,114		76,401
Liabilities of discontinued operations		113,397		123,131
Total current liabilities		260,513		249,130
Convertible notes		650,000		650,000
Other long-term liabilities		21,214		21,137
Minority interest in WHC		130,231		131,353
Stockholders’ equity		1,079,917		599,777
Total Liabilities and Stockholders’ Equity	$	2,141,875	$	1,651,397