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 | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Revenue | $ | 111,568 | $ | 96,797 | $ | 300,463 | $ | 263,451 | ||||||||
Cost of operations | 41,965 | 34,225 | 117,759 | 97,120 | ||||||||||||
Sales and marketing | 26,265 | 26,021 | 80,623 | 76,068 | ||||||||||||
General and administrative | 15,961 | 14,774 | 45,826 | 42,465 | ||||||||||||
Depreciation and amortization | 6,988 | 7,056 | 20,729 | 20,815 | ||||||||||||
Interest income | 834 | 2,616 | 2,733 | 8,419 | ||||||||||||
Impairment of auction rate securities | — | — | — | 27,406 | ||||||||||||
Income from continuing operations before income tax provision | 21,223 | 17,337 | 38,259 | 7,996 | ||||||||||||
Income tax provision | 8,622 | 7,375 | 15,469 | 15,308 | ||||||||||||
Income (loss) from continuing operations | 12,601 | 9,962 | 22,790 | (7,312 | ) | |||||||||||
Income (loss) from discontinued operations, net of tax | 190 | 804 | (5,100 | ) | 1,095 | |||||||||||
Net income (loss) | $ | 12,791 | $ | 10,766 | $ | 17,690 | $ | (6,217 | ) | |||||||
Basic income (loss) per common share: | ||||||||||||||||
Income (loss) from continuing operations | $ | 0.22 | $ | 0.17 | $ | 0.39 | $ | (0.13 | ) | |||||||
Income (loss) from discontinued operations | 0.00 | 0.02 | (0.09 | ) | 0.02 | |||||||||||
Net income (loss) | $ | 0.22 | $ | 0.19 | $ | 0.30 | $ | (0.11 | ) | |||||||
Diluted income (loss) per common share: | ||||||||||||||||
Income (loss) from continuing operations | $ | 0.21 | $ | 0.17 | $ | 0.39 | $ | (0.13 | ) | |||||||
Income (loss) from discontinued operations | 0.00 | 0.01 | (0.09 | ) | 0.02 | |||||||||||
Net income (loss) | $ | 0.21 | $ | 0.18 | $ | 0.30 | $ | (0.11 | ) | |||||||
Weighted-average shares outstanding used in computing basic and diluted net income (loss) per common share: | ||||||||||||||||
Basic | 57,777 | 57,770 | 57,676 | 57,699 | ||||||||||||
Diluted | 58,844 | 59,111 | 58,445 | 57,699 | ||||||||||||
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 | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Revenue | ||||||||||||||||
Public portal advertising and sponsorship | $ | 89,414 | $ | 74,658 | $ | 232,695 | $ | 197,523 | ||||||||
Private portal services | 22,154 | 22,139 | 67,768 | 65,928 | ||||||||||||
$ | 111,568 | $ | 96,797 | $ | 300,463 | $ | 263,451 | |||||||||
Earnings before interest, taxes, non-cash and other items (“Adjusted EBITDA”) (a) | $ | 33,123 | $ | 25,467 | $ | 75,029 | $ | 60,191 | ||||||||
Adjusted EBITDA per basic common share | $ | 0.57 | $ | 0.44 | $ | 1.30 | $ | 1.04 | ||||||||
Adjusted EBITDA per diluted common share | $ | 0.56 | $ | 0.43 | $ | 1.28 | $ | 1.04 | ||||||||
Interest, taxes, non-cash and other items (b) | ||||||||||||||||
Interest income | 834 | 2,616 | 2,733 | 8,419 | ||||||||||||
Depreciation and amortization | (6,988 | ) | (7,056 | ) | (20,729 | ) | (20,815 | ) | ||||||||
Non-cash advertising | — | (178 | ) | (1,753 | ) | (1,736 | ) | |||||||||
Non-cash stock-based compensation | (5,746 | ) | (3,512 | ) | (17,021 | ) | (10,657 | ) | ||||||||
Impairment of auction rate securities | — | — | — | (27,406 | ) | |||||||||||
Income tax provision | (8,622 | ) | (7,375 | ) | (15,469 | ) | (15,308 | ) | ||||||||
Income (loss) from continuing operations | 12,601 | 9,962 | 22,790 | (7,312 | ) | |||||||||||
Income (loss) from discontinued operations, net of tax | 190 | 804 | (5,100 | ) | 1,095 | |||||||||||
Net income (loss) | $ | 12,791 | $ | 10,766 | $ | 17,690 | $ | (6,217 | ) | |||||||
Basic income (loss) per common share: | ||||||||||||||||
Income (loss) from continuing operations | $ | 0.22 | $ | 0.17 | $ | 0.39 | $ | (0.13 | ) | |||||||
Income (loss) from discontinued operations | 0.00 | 0.02 | (0.09 | ) | 0.02 | |||||||||||
Net income (loss) | $ | 0.22 | $ | 0.19 | $ | 0.30 | $ | (0.11 | ) | |||||||
Diluted income (loss) per common share: | ||||||||||||||||
Income (loss) from continuing operations | $ | 0.21 | $ | 0.17 | $ | 0.39 | $ | (0.13 | ) | |||||||
Income (loss) from discontinued operations | 0.00 | 0.01 | (0.09 | ) | 0.02 | |||||||||||
Net income (loss) | $ | 0.21 | $ | 0.18 | $ | 0.30 | $ | (0.11 | ) | |||||||
Weighted-average shares outstanding used in computing per share amounts: | ||||||||||||||||
Basic | 57,777 | 57,770 | 57,676 | 57,699 | ||||||||||||
Diluted | 58,844 | 59,111 | 58,445 | 57,699 | ||||||||||||
(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)
September 30, 2009 | December 31, 2008 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 275,250 | $ | 191,659 | ||||
Accounts receivable, net | 87,072 | 93,082 | ||||||
Current portion of prepaid advertising | — | 1,753 | ||||||
Other current assets | 9,286 | 11,358 | ||||||
Assets of discontinued operations | — | 12,575 | ||||||
Total current assets | 371,608 | 310,427 | ||||||
Investments | 126,564 | 133,563 | ||||||
Property and equipment, net | 52,286 | 54,165 | ||||||
Goodwill | 208,967 | 208,967 | ||||||
Intangible assets, net | 21,416 | 26,237 | ||||||
Other assets | 13,259 | 22,573 | ||||||
$ | 794,100 | $ | 755,932 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accrued expenses | $ | 31,760 | $ | 31,241 | ||||
Deferred revenue | 83,861 | 79,613 | ||||||
Due to HLTH | 1,378 | 427 | ||||||
Liabilities of discontinued operations | — | 2,599 | ||||||
Total current liabilities | 116,999 | 113,880 | ||||||
Other long-term liabilities | 7,539 | 8,334 | ||||||
Stockholders’ equity | 669,562 | 633,718 | ||||||
$ | 794,100 | $ | 755,932 | |||||
WEBMD HEALTH CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
Nine Months Ended September 30, | ||||||||
2009 | 2008 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | 17,690 | $ | (6,217 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Loss (income) from discontinued operations, net of tax | 5,100 | (1,095 | ) | |||||
Depreciation and amortization | 20,729 | 20,815 | ||||||
Non-cash advertising | 1,753 | 1,736 | ||||||
Non-cash stock-based compensation | 17,021 | 10,657 | ||||||
Deferred and other income taxes | 14,835 | 14,977 | ||||||
Impairment of auction rate securities | — | 27,406 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 6,010 | 6,275 | ||||||
Other assets | (587 | ) | (2,651 | ) | ||||
Accrued expenses and other long-term liabilities | (276 | ) | (286 | ) | ||||
Due to HLTH | 951 | 563 | ||||||
Deferred revenue | 4,248 | 5,367 | ||||||
Net cash provided by continuing operations | 87,474 | 77,547 | ||||||
Net cash provided by discontinued operations | 728 | 3,205 | ||||||
Net cash provided by operating activities | 88,202 | 80,752 | ||||||
Cash flows from investing activities: | ||||||||
Proceeds from maturities and sales of available-for-sale securities | 1,800 | 43,300 | ||||||
Purchases of available-for-sale securities | — | (127,900 | ) | |||||
Purchases of property and equipment | (14,131 | ) | (15,014 | ) | ||||
Cash received from sale of businesses, net of fees | 2,840 | 1,133 | ||||||
Net cash used in continuing operations | (9,491 | ) | (98,481 | ) | ||||
Net cash used in discontinued operations | (8 | ) | (40 | ) | ||||
Net cash used in investing activities | (9,499 | ) | (98,521 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of common stock | 4,823 | 3,453 | ||||||
Tax benefit on stock-based awards | 65 | 315 | ||||||
Net cash provided by financing activities | 4,888 | 3,768 | ||||||
Net increase (decrease) in cash and cash equivalents | 83,591 | (14,001 | ) | |||||
Cash and cash equivalents at beginning of period | 191,659 | 213,753 | ||||||
Cash and cash equivalents at end of period | $ | 275,250 | $ | 199,752 | ||||