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 | ||||||||
March 31, | ||||||||
2010 | 2009 | |||||||
Revenue | $ | 108,030 | $ | 90,264 | ||||
Cost of operations | 42,994 | 36,565 | ||||||
Sales and marketing | 28,407 | 27,561 | ||||||
General and administrative | 18,809 | 21,848 | ||||||
Depreciation and amortization | 7,015 | 7,103 | ||||||
Interest income | 3,409 | 2,262 | ||||||
Interest expense | 5,139 | 6,536 | ||||||
(Loss) gain on convertible notes | (3,727 | ) | 6,647 | |||||
Loss on auction rate securities | 28,848 | — | ||||||
Other expense, net | 298 | 269 | ||||||
Loss from continuing operations before income tax benefit | (23,798 | ) | (709 | ) | ||||
Income tax benefit | 20,008 | 1,217 | ||||||
Consolidated (loss) income from continuing operations | (3,790 | ) | 508 | |||||
Consolidated income from discontinued operations, net of tax | — | 517 | ||||||
Consolidated net (loss) income inclusive of noncontrolling interest | (3,790 | ) | 1,025 | |||||
Income attributable to noncontrolling interest | — | (610 | ) | |||||
Net (loss) income attributable to Company stockholders | $ | (3,790 | ) | $ | 415 | |||
Amounts attributable to Company stockholders: | ||||||||
Loss from continuing operations | $ | (3,790 | ) | $ | (194 | ) | ||
Income from discontinued operations | — | 609 | ||||||
Net (loss) income attributable to Company stockholders | $ | (3,790 | ) | $ | 415 | |||
Basic and diluted (loss) income per common share: | ||||||||
Loss from continuing operations | $ | (0.07 | ) | $ | (0.00 | ) | ||
Income from discontinued operations | — | 0.01 | ||||||
Net (loss) income attributable to Company stockholders | $ | (0.07 | ) | $ | 0.01 | |||
Weighted-average shares outstanding used in computing income per common share: | ||||||||
Basic and diluted | 52,191 | 45,217 | ||||||
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 | ||||||||
March 31, | ||||||||
2010 | 2009 | |||||||
Revenue | ||||||||
Public portal advertising and sponsorship | $ | 86,257 | $ | 67,289 | ||||
Private portal services | 21,773 | 22,975 | ||||||
$ | 108,030 | $ | 90,264 | |||||
Earnings before interest, taxes, non-cash and other items (“Adjusted EBITDA”) (a) | $ | 25,657 | $ | 15,261 | ||||
Interest, taxes, non-cash and other items (b) | ||||||||
Interest income | 3,409 | 2,262 | ||||||
Interest expense | (5,139 | ) | (6,536 | ) | ||||
Income tax benefit | 20,008 | 1,217 | ||||||
Depreciation and amortization | (7,015 | ) | (7,103 | ) | ||||
Non-cash stock-based compensation | (7,837 | ) | (9,154 | ) | ||||
Non-cash advertising | — | (1,753 | ) | |||||
(Loss) gain on convertible notes | (3,727 | ) | 6,647 | |||||
Loss on auction rate securities | (28,848 | ) | — | |||||
Other expense, net | (298 | ) | (333 | ) | ||||
Consolidated (loss) income from continuing operations | (3,790 | ) | 508 | |||||
Consolidated income from discontinued operations, net of tax | — | 517 | ||||||
Consolidated net (loss) income inclusive of noncontrolling interest | (3,790 | ) | 1,025 | |||||
Income attributable to noncontrolling interest | — | (610 | ) | |||||
Net (loss) income attributable to Company stockholders | $ | (3,790 | ) | $ | 415 | |||
(a) | See Annex A-Explanation of Non-GAAP Financial Measures. | |
(b) | Reconciliation of Adjusted EBITDA to consolidated income from continuing operations. |
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WEBMD HEALTH CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
March 31, 2010 | December 31, 2009 | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 450,214 | $ | 459,766 | ||||
Accounts receivable, net | 120,584 | 118,155 | ||||||
Prepaid expenses and other current assets | 15,697 | 11,419 | ||||||
Investments | 357,342 | 9,932 | ||||||
Total current assets | 943,837 | 599,272 | ||||||
Investments | — | 338,446 | ||||||
Property and equipment, net | 49,369 | 52,194 | ||||||
Goodwill | 202,104 | 202,104 | ||||||
Intangible assets, net | 24,943 | 26,020 | ||||||
Deferred tax asset | 75,477 | 50,789 | ||||||
Other assets | 18,567 | 19,723 | ||||||
Total Assets | $ | 1,314,297 | $ | 1,288,548 | ||||
Liabilities and Equity | ||||||||
Accrued expenses | $ | 48,173 | $ | 63,721 | ||||
Deferred revenue | 120,139 | 98,474 | ||||||
1.75% convertible notes | 264,583 | 264,583 | ||||||
Deferred tax liability | 6,731 | 12,955 | ||||||
Liabilities of discontinued operations | 25,965 | 34,197 | ||||||
Total current liabilities | 465,591 | 473,930 | ||||||
31/8% convertible notes, net of discount of $12,151 at March 31, 2010 and $22,641 at December 31, 2009 | 134,915 | 227,659 | ||||||
Other long-term liabilities | 21,931 | 22,191 | ||||||
Stockholders’ equity | 691,860 | 564,768 | ||||||
Total Liabilities and Equity | $ | 1,314,297 | $ | 1,288,548 | ||||
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WEBMD HEALTH CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
Three Months Ended | ||||||||
March 31, | ||||||||
2010 | 2009 | |||||||
Cash flows from operating activities: | ||||||||
Consolidated net (loss) income inclusive of noncontrolling interest | $ | (3,790 | ) | $ | 1,025 | |||
Adjustments to reconcile consolidated net (loss) income inclusive of noncontrolling interest to net cash provided by (used in) operating activities: | ||||||||
Consolidated income from discontinued operations, net of tax | — | (517 | ) | |||||
Depreciation and amortization | 7,015 | 7,103 | ||||||
Non-cash interest | 2,090 | 2,799 | ||||||
Non-cash advertising | — | 1,753 | ||||||
Non-cash stock-based compensation | 7,837 | 9,154 | ||||||
Deferred income taxes | (21,463 | ) | (2,604 | ) | ||||
Loss (gain) on convertible notes | 3,727 | (6,647 | ) | |||||
Loss on auction rate securities | 28,848 | — | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (2,429 | ) | 2,247 | |||||
Prepaid expenses and other, net | (1,829 | ) | (1,224 | ) | ||||
Accrued expenses and other long-term liabilities | (14,224 | ) | (20,741 | ) | ||||
Deferred revenue | 21,665 | 4,961 | ||||||
Net cash provided by (used in) continuing operations | 27,447 | (2,691 | ) | |||||
Net cash (used in) provided by discontinued operations | (8,233 | ) | 2,001 | |||||
Net cash provided by (used in) operating activities | 19,214 | (690 | ) | |||||
Cash flows from investing activities: | ||||||||
Proceeds from sales of available-for-sale securities | 4,500 | 600 | ||||||
Purchases of property and equipment | (3,114 | ) | (5,309 | ) | ||||
Finalization of sale price of discontinued operations | (1,430 | ) | 250 | |||||
Net cash used in continuing operations | (44 | ) | (4,459 | ) | ||||
Net cash used in discontinued operations | — | (829 | ) | |||||
Net cash used in investing activities | (44 | ) | (5,288 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of common stock, net of cash used for employee withholding taxes | 5,775 | 7,041 | ||||||
Repurchases of convertible notes | (22,565 | ) | (78,183 | ) | ||||
Purchase of treasury stock under repurchase program | (6,527 | ) | — | |||||
Payment for shares tendered in 2009, delivered in 2010 | (6,818 | ) | — | |||||
Tax benefit on stock-based awards | 1,413 | — | ||||||
Net cash used in financing activities | (28,722 | ) | (71,142 | ) | ||||
Effect of exchange rates on cash | — | (245 | ) | |||||
Net decrease in cash and cash equivalents | (9,552 | ) | (77,365 | ) | ||||
Cash and cash equivalents at beginning of period | 459,766 | 629,848 | ||||||
Cash and cash equivalents at end of period | $ | 450,214 | $ | 552,483 | ||||
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