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,
	2008			2007		2008			2007
Revenue	$	100,367		$	86,034	$	271,185		$	235,112
Costs and expenses:
Cost of operations		35,323			30,021		99,656			87,636
Sales and marketing		26,439			22,459		77,729			67,258
General and administrative		22,929			25,718		67,254			81,111
Depreciation and amortization		7,265			7,390		21,468			20,954
Interest income		9,386			10,864		29,384			30,638
Interest expense		4,636			4,660		13,871			13,985
Gain on sale of EBS Master LLC		—			—		538,024			—
Impairment of auction rate securities		—			—		60,108			—
Other (expense) income, net		(997	)		989		(5,807	)		5,267
Income from continuing operations before income tax provision		12,164			7,639		492,700			73
Income tax provision		7,679			2,977		34,623			4,404
Minority interest in WHC income (loss)		1,845			1,800		(929	)		2,758
Equity in earnings of EBS Master LLC		—			8,005		4,007			22,679
Income from continuing operations		2,640			10,867		463,013			15,590
Income (loss) from discontinued operations, net of tax		93,241			5,704		93,159			(38,780	)
Net income (loss)	$	95,881		$	16,571	$	556,172		$	(23,190	)
Basic income (loss) per common share:
Income from continuing operations	$	0.01		$	0.06	$	2.53		$	0.09
Income (loss) from discontinued operations		0.51			0.03		0.51			(0.22	)
Net income (loss)	$	0.52		$	0.09	$	3.04		$	(0.13	)
Diluted income (loss) per common share:
Income from continuing operations	$	0.01		$	0.06	$	2.06		$	0.08
Income (loss) from discontinued operations		0.50			0.03		0.41			(0.21	)
Net income (loss)	$	0.51		$	0.09	$	2.47		$	(0.13	)
Weighted-average shares outstanding used in computing income (loss) per common share:
Basic		183,716			179,811		182,838			178,681
Diluted		187,527			188,071		228,653			188,486

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2008			2007			2008			2007
Revenue
WebMD Online Services:
Advertising and sponsorship	$	72,046		$	59,087		$	190,494		$	158,944
Licensing		22,139			20,001			65,928			59,915
Content syndication and other		392			490			1,154			2,027
Total WebMD Online Services		94,577			79,578			257,576			220,886
WebMD Publishing and Other Services		5,810			6,520			13,669			14,426
Inter-segment eliminations		(20	)		(64	)		(60	)		(200	)
	$	100,367		$	86,034		$	271,185		$	235,112
Earnings before interest, taxes, non-cash and other items (“Adjusted EBITDA”) (a)
WebMD Online Services	$	25,956		$	21,948		$	61,287		$	48,982
WebMD Publishing and Other Services		1,212			2,138			1,485			2,643
Corporate		(4,679	)		(5,811	)		(15,311	)		(18,874	)
	$	22,489		$	18,275		$	47,461		$	32,751
Adjusted EBITDA per diluted common share (b)	$	0.12		$	0.10		$	0.21		$	0.17
Interest, taxes, non-cash and other items (c)
Interest income	$	9,386		$	10,864		$	29,384		$	30,638
Interest expense		(4,636	)		(4,660	)		(13,871	)		(13,985	)
Income tax provision		(7,679	)		(2,977	)		(34,623	)		(4,404	)
Depreciation and amortization		(7,265	)		(7,390	)		(21,468	)		(20,954	)
Non-cash stock-based compensation		(6,531	)		(9,285	)		(18,974	)		(26,246	)
Non-cash advertising		(178	)		(169	)		(1,736	)		(2,489	)
Minority interest in WHC (income) loss		(1,845	)		(1,800	)		929			(2,758	)
Equity in earnings of EBS Master LLC		—			8,005			4,007			22,679
Gain on sale of EBS Master LLC		—			—			538,024			—
Impairment of auction rate securities		—			—			(60,108	)		—
Other (expense) income, net		(1,101	)		4			(6,012	)		358
Income from continuing operations		2,640			10,867			463,013			15,590
Income (loss) from discontinued operations, net of tax		93,241			5,704			93,159			(38,780	)
Net income (loss)	$	95,881		$	16,571		$	556,172		$	(23,190	)
Basic income (loss) per common share:
Income from continuing operations	$	0.01		$	0.06		$	2.53		$	0.09
Income (loss) from discontinued operations		0.51			0.03			0.51			(0.22	)
Net income (loss)	$	0.52		$	0.09		$	3.04		$	(0.13	)
Diluted income (loss) per common share:
Income from continuing operations	$	0.01		$	0.06		$	2.06		$	0.08
Income (loss) from discontinued operations		0.50			0.03			0.41			(0.21	)
Net income (loss)	$	0.51		$	0.09		$	2.47		$	(0.13	)
Weighted-average shares outstanding used in computing income (loss) per common share:
Basic		183,716			179,811			182,838			178,681
Diluted		187,527			188,071			228,653			188,486

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

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

	September 30, 2008		December 31, 2007
Assets
Cash and cash equivalents	$	1,380,179	$	536,879
Short-term investments		284,789		290,858
Accounts receivable, net		78,148		86,081
Due from EBS Master LLC		—		1,224
Prepaid expenses and other current assets		27,190		71,090
Assets of discontinued operations		119,891		262,964
Total current assets		1,890,197		1,249,096
Marketable equity securities		2,175		2,383
Property and equipment, net		51,766		49,554
Goodwill		211,414		217,323
Intangible assets, net		28,917		36,314
Investment in EBS Master LLC		—		25,261
Other assets		36,534		71,466
Total Assets	$	2,221,003	$	1,651,397
Liabilities and Stockholders’ Equity
Accrued expenses	$	44,305	$	49,598
Deferred revenue		81,740		76,401
Liabilities of discontinued operations		100,464		123,131
Total current liabilities		226,509		249,130
Convertible notes		650,000		650,000
Other long-term liabilities		21,184		21,137
Minority interest in WHC		139,250		131,353
Stockholders’ equity		1,184,060		599,777
Total Liabilities and Stockholders’ Equity	$	2,221,003	$	1,651,397

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

	Nine Months Ended
	September 30,
	2008			2007
Cash flows from operating activities:
Net income (loss)	$	556,172		$	(23,190	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
(Income) loss from discontinued operations, net of tax		(93,159	)		38,780
Depreciation and amortization		21,468			20,954
Minority interest in WHC (loss) income		(929	)		2,758
Equity in earnings of EBS Master LLC		(4,007	)		(22,679	)
Amortization of debt issuance costs		2,248			2,179
Non-cash advertising		1,736			2,489
Non-cash stock-based compensation		18,974			26,246
Deferred income taxes		11,934			3,710
Gain on sale of EBS Master LLC and 2006 EBS Sale		(538,024	)		(399	)
Impairment of auction rate securities		60,108			—
Changes in operating assets and liabilities:
Accounts receivable		7,932			14,835
Prepaid expenses and other, net		4,174			(198	)
Accrued expenses and other long-term liabilities		(3,639	)		(45,878	)
Deferred revenue		5,340			3,253
Net cash provided by continuing operations		50,328			22,860
Net cash provided by discontinued operations		28,497			24,366
Net cash provided by operating activities		78,825			47,226
Cash flows from investing activities:
Proceeds from maturities and sales of available-for-sale securities		117,539			356,492
Purchases of available-for-sale securities		(177,150	)		(694,522	)
Purchases of property and equipment		(15,115	)		(14,427	)
Proceeds related to the sales of ViPS, EBS, EPS and ACS/ACP, net of expenses		821,706			14,565
Decreases in net advances to EBS Master LLC		1,224			19,921
Other		148			—
Net cash provided by (used in) continuing operations		748,352			(317,971	)
Net cash used in discontinued operations		(4,265	)		(3,785	)
Net cash provided by (used in ) investing activities		744,087			(321,756	)
Cash flows from financing activities:
Proceeds from issuance of HLTH and WHC common stock		20,725			114,077
Purchases of treasury stock under repurchase program		—			(47,120	)
Other		343			(18	)
Net cash provided by continuing operations		21,068			66,939
Net cash used in discontinued operations		(76	)		(130	)
Net cash provided by financing activities		20,992			66,809
Effect of exchange rates on cash		(604	)		1,042
Net increase (decrease) in cash and cash equivalents		843,300			(206,679	)
Cash and cash equivalents at beginning of period		536,879			614,691
Cash and cash equivalents at end of period	$	1,380,179		$	408,012