Exhibit 99.3
FINANCIAL GUIDANCE SUMMARY
WebMD Health Corp.
2011 Financial Guidance
(in millions, except per share amounts)
| | | | | | | | | |
| | | Year Ending | |
| | | December 31, 2011 | |
| | | Guidance Range | |
| Revenue | | $ | 610.0 | | | $ | 640.0 | |
| | | | | | | |
| Earnings before interest, taxes, depreciation, amortization and other non-cash items (“Adjusted EBITDA”) (a) | | $ | 215.0 | | | $ | 230.0 | |
| Interest, taxes, depreciation, amortization and other non-cash items (b) | | | | | | | | |
| Interest income | | | 0.5 | | | | 0.5 | |
| Interest expense | | | (11.5 | ) | | | (11.5 | ) |
| Depreciation and amortization | | | (30.0 | ) | | | (28.0 | ) |
| Non-cash stock-based compensation | | | (41.0 | ) | | | (38.0 | ) |
| | | | | | | |
| Pre-tax income from continuing operations | | | 133.0 | | | | 153.0 | |
| Income tax provision | | | (56.0 | ) | | | (64.0 | ) |
| | | | | | | |
| Income from continuing operations | | $ | 77.0 | | | $ | 89.0 | |
| | | | | | | |
| Income from continuing operations per share: | | | | | | | | |
| Basic | | $ | 1.27 | | | $ | 1.47 | |
| | | | | | | |
| Diluted | | $ | 1.22 | | | $ | 1.40 | |
| | | | | | | |
| Weighted-average shares outstanding used in computing income from continuing operations per common share: | | | | | | | | |
| Basic | | | 60.0 | | | | 60.0 | |
| Diluted | | | 68.0 | | | | 68.0 | |
| | |
| (a) | | See Annex A — Explanation of Non-GAAP Financial Measures |
| |
| (b) | | Reconciliation of Adjusted EBITDA to consolidated income from continuing operations |
Additional information regarding forecast for the first quarter of 2011:
| | – | | Revenue is forecasted to be in excess of $125 million in the quarter ending March 31, 2011. |
| |
| | – | | Adjusted EBITDA as a percentage of revenue is forecasted to be approximately 27% in the quarter ending March 31, 2011. |
| |
| | – | | Income from continuing operations as a percentage of revenue is forecasted to be approximately 7% in the quarter ending March 31, 2011. |
Additional information regarding full year forecast:
| | – | | Income tax rate for 2011 is forecasted to be approximately 42% of pretax income. |
| |
| | – | | The distribution of the annual revenue is expected to be approximately 85% public portals advertising and sponsorship and 15% private portal licensing. Quarterly revenue distributions may vary from this annual estimate. |
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| | – | | 2011 guidance excludes any gains or losses related to investments / convertible notes. |
Additional information regarding full year income per share calculation:
| | – | | Basic income per share: Reflects a reduction to income from continuing operations of $0.6 million to consider the effect of restricted stock. |
| |
| | – | | Diluted income per share: Reflects an increase to income from continuing operations of $6.1 million for the interest expense (net of tax) on the 2.5% Notes of $6.7 million, offset by $0.6 million to consider the effect of restricted stock. The diluted share count of 68 million includes the weighted impact of 6 million shares related to the 2.5% Notes. |
