Exhibit 99.3
FINANCIAL GUIDANCE SUMMARY
WEBMD HEALTH CORP.
2009 Financial Guidance
(in millions, except per share amounts)
2009 Financial Guidance
(in millions, except per share amounts)
Year Ending | ||||||||
December 31, 2009 | ||||||||
Range(c) | ||||||||
Revenue | $ | 420.0 | $ | 440.0 | ||||
Earnings before interest, taxes, non-cash and other items (“Adjusted EBITDA”) (a) | $ | 110.0 | $ | 120.0 | ||||
Adjusted EBITDA per diluted common share | $ | 1.77 | $ | 1.94 | ||||
Interest, taxes, non-cash and other items (b) | ||||||||
Interest income | 4.0 | 4.0 | ||||||
Depreciation and amortization | (33.0 | ) | (30.0 | ) | ||||
Non-cash advertising | (1.8 | ) | (1.8 | ) | ||||
Non-cash stock-based compensation | (26.0 | ) | (23.0 | ) | ||||
Impairment of auction rate securities | — | — | ||||||
Restructuring | — | — | ||||||
Income tax provision | (21.8 | ) | (28.4 | ) | ||||
Income from continuing operations | $ | 31.4 | $ | 40.8 | ||||
Income from continuing operations per common share: | ||||||||
Basic | $ | 0.53 | $ | 0.69 | ||||
Diluted | $ | 0.51 | $ | 0.66 | ||||
Weighted-average shares outstanding used in computing income from continuing operations per common share: | ||||||||
Basic | 59.0 | 59.0 | ||||||
Diluted | 62.0 | 62.0 |
(a) | See Annex A — Explanation of Non-GAAP Financial Measures. | |
(b) | Reconciliation of Adjusted EBITDA to income from continuing operations. | |
(c) | The guidance for the year ending December 31, 2009 has been adjusted to exclude the discontinued operations of the Little Blue Book print directory business. |
Additional information regarding guidance for third quarter of 2009:
• | Revenue is forecasted to be approximately $109 to $112 in the quarter ending September 30, 2009 | ||
• | Adjusted EBITDA as a percentage of revenue is forecasted to be approximately 28% in the quarter ending September 30, 2009 | ||
• | Income from continuing operations as a percentage of revenue is forecasted to be approximately 10% in the quarter ending September 30, 2009 |
Additional information regarding full year guidance:
• | Income tax rate for 2009 is forecasted to be approximately 41% of pretax income. The income tax provision excludes any benefit relating to any reversal in 2009 of the valuation allowance against deferred tax assets. | ||
• | The distribution of the annual revenue is expected to be approximately 78.5% public portal advertising and sponsorship and 21.5% private portal services. Quarterly revenue distribuitions may vary from this annual estimate. | ||
• | Excludes the impact of the pending merger of WebMD and HLTH. |