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,
	2008			2007			2008			2007
Revenue	$	111,512		$	96,581		$	382,697		$	331,693
Costs and expenses:
Cost of operations		38,708			29,645			138,363			117,281
Sales and marketing		30,585			26,387			108,316			93,645
General and administrative		22,250			23,210			89,503			104,321
Depreciation and amortization		7,312			7,302			28,780			28,256
Interest income		5,916			11,397			35,300			42,035
Interest expense		4,642			4,608			18,513			18,593
Restructuring		7,416			—			7,416			—
Gain on sale of EBS Master LLC		—			—			538,024			—
Impairment of auction rate securities		—			—			60,108			—
Other (expense) income, net		(142	)		(1,462	)		(5,949	)		3,805
Income from continuing operations before income tax (benefit) provision		6,373			15,364			499,073			15,437
Income tax (benefit) provision		(4,372	)		(13,145	)		30,251			(8,741	)
Minority interest in WHC		1,961			7,909			1,032			10,667
Equity in earnings of EBS Master LLC		—			5,887			4,007			28,566
Income from continuing operations		8,784			26,487			471,797			42,077
Income (loss) from discontinued operations, net of tax		333			16,582			93,492			(22,198	)
Net income	$	9,117		$	43,069		$	565,289		$	19,879
Basic income (loss) per common share:
Income from continuing operations	$	0.06		$	0.15		$	2.70		$	0.24
Income (loss) from discontinued operations		0.00			0.09			0.53			(0.13	)
Net income	$	0.06		$	0.24		$	3.23		$	0.11
Diluted income (loss) per common share:
Income from continuing operations	$	0.06		$	0.13		$	2.19		$	0.21
Income (loss) from discontinued operations		0.00			0.07			0.43			(0.12	)
Net income	$	0.06		$	0.20		$	2.62		$	0.09
Weighted-average shares outstanding used in computing income (loss) per common share:
Basic		151,199			181,280			174,928			179,330
Diluted		175,274			212,335			220,127			188,763

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

	Three Months Ended						Years Ended
	December 31,						December 31,
	2008			2007			2008			2007
Revenue
WebMD Online Services:
Advertising and sponsorship	$	85,296		$	70,389		$	275,790		$	229,333
Licensing		23,198			21,556			89,126			81,471
Content syndication and other		280			351			1,434			2,378
Total WebMD Online Services		108,774			92,296			366,350			313,182
WebMD Publishing and Other Services		2,758			4,346			16,427			18,772
Inter-segment eliminations		(20	)		(61	)		(80	)		(261	)
	$	111,512		$	96,581		$	382,697		$	331,693
Earnings before interest, taxes, non-cash
and other items (“Adjusted EBITDA”) (a)
WebMD Online Services	$	34,148		$	31,612		$	95,435		$	80,594
WebMD Publishing and Other Services		(338	)		1,460			1,147			4,103
Corporate		(4,534	)		(5,628	)		(19,845	)		(24,502	)
	$	29,276		$	27,444		$	76,737		$	60,195
Adjusted EBITDA per diluted common share (b)	$	0.17		$	0.13		$	0.35		$	0.32
Interest, taxes, non-cash and other items (c)
Interest income		5,916			11,397			35,300			42,035
Interest expense		(4,642	)		(4,608	)		(18,513	)		(18,593	)
Income tax benefit (provision)		4,372			13,145			(30,251	)		8,741
Depreciation and amortization		(7,312	)		(7,302	)		(28,780	)		(28,256	)
Non-cash stock-based compensation		(5,816	)		(6,406	)		(24,790	)		(32,652	)
Non-cash advertising		(3,361	)		(2,775	)		(5,097	)		(5,264	)
Minority interest in WHC		(1,961	)		(7,909	)		(1,032	)		(10,667	)
Restructuring		(7,416	)		—			(7,416	)		—
Equity in earnings of EBS Master LLC		—			5,887			4,007			28,566
Gain on sale of EBS Master LLC		—			—			538,024			—
Impairment of auction rate securities		—			—			(60,108	)		—
Other expense, net		(272	)		(2,386	)		(6,284	)		(2,028	)
Income from continuing operations		8,784			26,487			471,797			42,077
Income (loss) from discontinued operations, net of tax		333			16,582			93,492			(22,198	)
Net income	$	9,117		$	43,069		$	565,289		$	19,879
Basic income (loss) per common share:
Income from continuing operations	$	0.06		$	0.15		$	2.70		$	0.24
Income (loss) from discontinued operations		0.00			0.09			0.53			(0.13	)
Net income	$	0.06		$	0.24		$	3.23		$	0.11
Diluted income (loss) per common share:
Income from continuing operations	$	0.06		$	0.13		$	2.19		$	0.21
Income (loss) from discontinued operations		0.00			0.07			0.43			(0.12	)
Net income	$	0.06		$	0.20		$	2.62		$	0.09
Weighted-average shares outstanding used in computing income (loss) per common share:
Basic		151,199			181,280			174,928			179,330
Diluted		175,274			212,335			220,127			188,763

(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)

	December 31,
	2008		2007
Assets
Cash and cash equivalents	$	629,848	$	536,879
Short-term investments		371		290,858
Accounts receivable, net		94,140		86,081
Due from EBS Master LLC		—		1,224
Prepaid expenses and other current assets		40,811		71,090
Assets of discontinued operations		118,775		262,964
Total current assets		883,945		1,249,096
Investments		288,049		2,383
Property and equipment, net		56,731		49,554
Goodwill		213,148		217,323
Intangible assets, net		32,690		36,314
Investment in EBS Master LLC		—		25,261
Other assets		24,465		71,466
Total Assets	$	1,499,028	$	1,651,397
Liabilities and Stockholders’ Equity
Accrued expenses	$	54,708	$	49,598
Deferred revenue		80,489		76,401
Liabilities of discontinued operations		98,212		123,131
Total current liabilities		233,409		249,130
Convertible notes		650,000		650,000
Other long-term liabilities		22,664		21,137
Minority interest in WHC		134,223		131,353
Stockholders’ equity		458,732		599,777
Total Liabilities and Stockholders’ Equity	$	1,499,028	$	1,651,397

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

	Years Ended December 31,
	2008			2007
Cash flows from operating activities:
Net income	$	565,289		$	19,879
Adjustments to reconcile net income to net cash provided by operating activities:
(Income) loss from discontinued operations, net of tax		(93,492	)		22,198
Depreciation and amortization		28,780			28,256
Minority interest in WHC		1,032			10,667
Equity in earnings of EBS Master LLC		(4,007	)		(28,566	)
Non-cash interest expense, net		1,944			2,916
Non-cash advertising		5,097			5,264
Non-cash stock-based compensation		24,790			32,652
Deferred income taxes		10,617			(10,136	)
Gain on sale of EBS Master LLC		(538,024	)		—
Gain on 2006 EBS Sale		—			(399	)
Impairment of auction rate securities		60,108			—
Changes in operating assets and liabilities:
Accounts receivable		(8,059	)		3,840
Prepaid expenses and other, net		1,892			5,329
Accrued expenses and other long-term liabilities		5,908			(44,318	)
Deferred revenue		4,088			314
Net cash provided by continuing operations		65,963			47,896
Net cash provided by discontinued operations		31,151			27,497
Net cash provided by operating activities		97,114			75,393
Cash flows from investing activities:
Proceeds from maturities and sales of available-for-sale securities		118,339			670,326
Purchases of available-for-sale securities		(177,150	)		(927,038	)
Purchases of property and equipment		(24,335	)		(19,053	)
Purchase of investment in preferred stock		(6,471	)		—
Cash paid in business combinations, net of cash acquired		(2,633	)		—
Purchase of minority interest in subsidiary		(12,818	)		—
Proceeds related to the sale of EBS Master LLC		574,617			—
Proceeds from the sale of discontinued operations		247,491			11,667
Proceeds from the 2006 EBS Sale, net		—			2,898
Proceeds from advances to EBS MasterLLC		1,224			18,792
Net cash provided by (used in) continuing operations		718,264			(242,408	)
Net cash used in discontinued operations		(4,782	)		(4,741	)
Net cash provided by (used in) investing activities		713,482			(247,149	)
Cash flows from financing activities:
Proceeds from issuance of HLTH and WHC common stock		21,683			133,054
Tax benefit on stock-based awards		748			6,601
Purchases of treasury stock under repurchase program		—			(47,123	)
Purchases of treasury stock in tender offer		(737,324	)		—
Other		(700	)		(20	)
Net cash (used in) provided by continuing operations		(715,593	)		92,512
Net cash used in discontinued operations		(76	)		(175	)
Net cash (used in) provided by financing activities		(715,669	)		92,337
Effect of exchange rates on cash		(1,958	)		1,607
Net increase (decrease) in cash and cash equivalents		92,969			(77,812	)
Cash and cash equivalents at beginning of period		536,879			614,691
Cash and cash equivalents at end of period	$	629,848		$	536,879