Exhibit 99.2
WEBMD HEALTH CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data, unaudited)
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data, unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Revenue | $ | 98,631 | $ | 86,004 | $ | 188,895 | $ | 166,654 | ||||||||
Cost of operations | 39,229 | 31,968 | 75,794 | 62,895 | ||||||||||||
Sales and marketing | 26,797 | 24,898 | 54,358 | 50,047 | ||||||||||||
General and administrative | 15,139 | 14,211 | 29,865 | 27,691 | ||||||||||||
Depreciation and amortization | 6,804 | 7,087 | 13,741 | 13,759 | ||||||||||||
Interest income | 924 | 2,350 | 1,899 | 5,803 | ||||||||||||
Impairment of auction rate securities | — | — | — | 27,406 | ||||||||||||
Income (loss) from continuing operations before income tax provision | 11,586 | 10,190 | 17,036 | (9,341 | ) | |||||||||||
Income tax provision | 4,636 | 4,501 | 6,847 | 7,933 | ||||||||||||
Income (loss) from continuing operations | 6,950 | 5,689 | 10,189 | (17,274 | ) | |||||||||||
(Loss) income from discontinued operations, net of tax | (4,867 | ) | 663 | (5,290 | ) | 291 | ||||||||||
Net income (loss) | $ | 2,083 | $ | 6,352 | $ | 4,899 | $ | (16,983 | ) | |||||||
Basic income (loss) per common share: | ||||||||||||||||
Income (loss) from continuing operations | $ | 0.12 | $ | 0.10 | $ | 0.18 | $ | (0.30 | ) | |||||||
(Loss) income from discontinued operations | (0.08 | ) | 0.01 | (0.09 | ) | 0.01 | ||||||||||
Net income (loss) | $ | 0.04 | $ | 0.11 | $ | 0.09 | $ | (0.29 | ) | |||||||
Diluted income (loss) per common share: | ||||||||||||||||
Income (loss) from continuing operations | $ | 0.12 | $ | 0.10 | $ | 0.17 | $ | (0.30 | ) | |||||||
(Loss) income from discontinued operations | (0.08 | ) | 0.01 | (0.09 | ) | 0.01 | ||||||||||
Net income (loss) | $ | 0.04 | $ | 0.11 | $ | 0.08 | $ | (0.29 | ) | |||||||
Weighted-average shares outstanding used in computing basic and diluted net income (loss) per common share: | ||||||||||||||||
Basic | 57,675 | 57,693 | 57,625 | 57,664 | ||||||||||||
Diluted | 58,632 | 59,061 | 58,370 | 57,664 | ||||||||||||
WEBMD HEALTH CORP.
CONSOLIDATED SUPPLEMENTAL FINANCIAL INFORMATION
(In thousands, except per share data, unaudited)
CONSOLIDATED SUPPLEMENTAL FINANCIAL INFORMATION
(In thousands, except per share data, unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Revenue | ||||||||||||||||
Public portal advertising and sponsorship | $ | 75,992 | $ | 64,138 | $ | 143,281 | $ | 122,865 | ||||||||
Private portal services | 22,639 | 21,866 | 45,614 | 43,789 | ||||||||||||
$ | 98,631 | $ | 86,004 | $ | 188,895 | $ | 166,654 | |||||||||
Earnings before interest, taxes, non-cash and other items (“Adjusted EBITDA”) (a) | $ | 23,218 | $ | 18,392 | $ | 41,906 | $ | 34,724 | ||||||||
Adjusted EBITDA per basic common share | $ | 0.40 | $ | 0.32 | $ | 0.73 | $ | 0.60 | ||||||||
Adjusted EBITDA per diluted common share | $ | 0.40 | $ | 0.31 | $ | 0.72 | $ | 0.60 | ||||||||
Interest, taxes, non-cash and other items (b) | ||||||||||||||||
Interest income | 924 | 2,350 | 1,899 | 5,803 | ||||||||||||
Depreciation and amortization | (6,804 | ) | (7,087 | ) | (13,741 | ) | (13,759 | ) | ||||||||
Non-cash advertising | — | — | (1,753 | ) | (1,558 | ) | ||||||||||
Non-cash stock-based compensation | (5,752 | ) | (3,465 | ) | (11,275 | ) | (7,145 | ) | ||||||||
Impairment of auction rate securities | — | — | — | (27,406 | ) | |||||||||||
Income tax provision | (4,636 | ) | (4,501 | ) | (6,847 | ) | (7,933 | ) | ||||||||
Income (loss) from continuing operations | 6,950 | 5,689 | 10,189 | (17,274 | ) | |||||||||||
(Loss) income from discontinued operations, net of tax | (4,867 | ) | 663 | (5,290 | ) | 291 | ||||||||||
Net income (loss) | $ | 2,083 | $ | 6,352 | $ | 4,899 | $ | (16,983 | ) | |||||||
Basic income (loss) per common share: | ||||||||||||||||
Income (loss) from continuing operations | $ | 0.12 | $ | 0.10 | $ | 0.18 | $ | (0.30 | ) | |||||||
(Loss) income from discontinued operations | (0.08 | ) | 0.01 | (0.09 | ) | 0.01 | ||||||||||
Net income (loss) | $ | 0.04 | $ | 0.11 | $ | 0.09 | $ | (0.29 | ) | |||||||
Diluted income (loss) per common share: | ||||||||||||||||
Income (loss) from continuing operations | $ | 0.12 | $ | 0.10 | $ | 0.17 | $ | (0.30 | ) | |||||||
(Loss) income from discontinued operations | (0.08 | ) | 0.01 | (0.09 | ) | 0.01 | ||||||||||
Net income (loss) | $ | 0.04 | $ | 0.11 | $ | 0.08 | $ | (0.29 | ) | |||||||
Weighted-average shares outstanding used in computing per share amounts: | ||||||||||||||||
Basic | 57,675 | 57,693 | 57,625 | 57,664 | ||||||||||||
Diluted | 58,632 | 59,061 | 58,370 | 57,664 | ||||||||||||
(a) | See Annex A — Explanation of Non-GAAP Financial Measures | |
(b) | Reconciliation of Adjusted EBITDA to net income (loss) |
WEBMD HEALTH CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
June 30, 2009 | December 31, 2008 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 246,878 | $ | 191,659 | ||||
Accounts receivable, net | 78,674 | 93,082 | ||||||
Current portion of prepaid advertising | — | 1,753 | ||||||
Other current assets | 11,147 | 11,358 | ||||||
Assets of discontinued operations | 5,111 | 12,575 | ||||||
Total current assets | 341,810 | 310,427 | ||||||
Investments | 126,330 | 133,563 | ||||||
Property and equipment, net | 54,513 | 54,165 | ||||||
Goodwill | 208,967 | 208,967 | ||||||
Intangible assets, net | 22,878 | 26,237 | ||||||
Other assets | 17,956 | 22,573 | ||||||
$ | 772,454 | $ | 755,932 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accrued expenses | $ | 29,273 | $ | 31,241 | ||||
Deferred revenue | 86,261 | 79,613 | ||||||
Due to HLTH | 736 | 427 | ||||||
Liabilities of discontinued operations | 792 | 2,599 | ||||||
Total current liabilities | 117,062 | 113,880 | ||||||
Other long-term liabilities | 7,803 | 8,334 | ||||||
Stockholders’ equity | 647,589 | 633,718 | ||||||
$ | 772,454 | $ | 755,932 | |||||
WEBMD HEALTH CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
Six Months Ended June 30, | ||||||||
2009 | 2008 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | 4,899 | $ | (16,983 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Loss (income) from discontinued operations, net of tax | 5,290 | (291 | ) | |||||
Depreciation and amortization | 13,741 | 13,759 | ||||||
Non-cash advertising | 1,753 | 1,558 | ||||||
Non-cash stock-based compensation | 11,275 | 7,145 | ||||||
Deferred and other income taxes | 6,545 | 6,568 | ||||||
Impairment of auction rate securities | — | 27,406 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 14,408 | 15,249 | ||||||
Other assets | (1,139 | ) | (1,393 | ) | ||||
Accrued expenses and other long-term liabilities | (2,499 | ) | (5,056 | ) | ||||
Due to HLTH | 309 | 1,246 | ||||||
Deferred revenue | 6,648 | 10,195 | ||||||
Net cash provided by continuing operations | 61,230 | 59,403 | ||||||
Net cash provided by discontinued operations | 506 | 3,355 | ||||||
Net cash provided by operating activities | 61,736 | 62,758 | ||||||
Cash flows from investing activities: | ||||||||
Proceeds from maturities and sales of available-for-sale securities | 900 | 41,300 | ||||||
Purchases of available-for-sale securities | — | (127,900 | ) | |||||
Purchases of property and equipment | (10,833 | ) | (6,906 | ) | ||||
Cash received from sale of business, net of fees | 250 | 1,133 | ||||||
Net cash used in continuing operations | (9,683 | ) | (92,373 | ) | ||||
Net cash used in discontinued operations | (7 | ) | (40 | ) | ||||
Net cash used in investing activities | (9,690 | ) | (92,413 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of common stock | 3,173 | 2,392 | ||||||
Net cash provided by financing activities | 3,173 | 2,392 | ||||||
Net increase (decrease) in cash and cash equivalents | 55,219 | (27,263 | ) | |||||
Cash and cash equivalents at beginning of period | 191,659 | 213,753 | ||||||
Cash and cash equivalents at end of period | $ | 246,878 | $ | 186,490 | ||||