Exhibit 99.2
FINANCIAL GUIDANCE SUMMARY
WebMD Health Corp
2011 Financial Guidance
(in millions, except per share amounts)
| | | | | | | | | |
| | | Year Ended | |
| | | 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 | | | (20.7 | ) | | | (20.7 | ) |
| Depreciation and amortization | | | (30.0 | ) | | | (28.0 | ) |
| Non-cash stock-based compensation | | | (41.0 | ) | | | (38.0 | ) |
| | | | | | | |
| Pre-tax income from continuing operations | | | 123.8 | | | | 143.8 | |
| | | | | | | | | |
| Income tax provision | | | (52.0 | ) | | | (60.0 | ) |
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| Income from continuing operations | | $ | 71.8 | | | $ | 83.8 | |
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| | | | | | | | | |
| Income from continuing operations per share | | | | | | | | |
| Basic | | $ | 1.21 | | | $ | 1.41 | |
| | | | | | | |
| Diluted | | $ | 1.16 | | | $ | 1.34 | |
| | | | | | | |
| | | | | | | | | |
| Weighted-average shares outstanding used in computing income from continuing operations per common share: | | | | | | | | |
| Basic | | | 59.0 | | | | 59.0 | |
| Diluted | | | 67.0 | | | | 71.0 | |
| | |
| (a) | | See Annex A — Explanation of Non-GAAP Financial Measures |
| |
| (b) | | Reconciliation of Adjusted EBITDA to consolidated income from continuing operations |
The Company expects that its results for the quarter ended March 31, 2011 will exceed First Call consensus analyst estimates of $126.2 million for revenue, $34.0 million for Adjusted EBITDA and $8.9 million for income from continuing operations.
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. |
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| | - | | Diluted income per share: |
| | - | | The low end of the guidance range 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 low end of the guidance range for diluted share count includes the weighted impact of 6 million shares related to the 2.5% Notes. |
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| | - | | The high end of the guidance range reflects these same items plus an additional increase to income from continuing operations for the interest expense (net of tax) on the 2.25% Notes of $5.2 million. The high end of the guidance range for diluted share count also includes the additional weighted impact of 4 million shares related to the 2.25% Notes. |
