Exhibit 99.3
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 | |
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| Earnings before interest, taxes, depreciation, amortization and other non-cash items (“Adjusted EBITDA”) (a) | | $ | 215.0 | | | $ | 230.0 | |
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| 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 | ) |
| Gain on investments | | | 14.1 | | | | 14.1 | |
| Other expense, net | | | (0.1 | ) | | | (0.1 | ) |
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| Pre-tax income from continuing operations | | | 137.8 | | | | 157.8 | |
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| Income tax provision | | | (58.0 | ) | | | (66.0 | ) |
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| Income from continuing operations | | $ | 79.8 | | | $ | 91.8 | |
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| Income from continuing operations per share: | | | | | | | | |
| Basic | | $ | 1.34 | | | $ | 1.55 | |
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| Diluted | | $ | 1.28 | | | $ | 1.45 | |
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| Weighted-average shares outstanding used in computing income from continuing operations per common share: | | | | | | | | |
| Basic | | | 59 | | | | 59 | |
| Diluted | | | 71 | | | | 71 | |
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| (a) | | See Annex A — Explanation of Non-GAAP Financial Measures |
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| (b) | | Reconciliation of Adjusted EBITDA to consolidated income from continuing operations |
Additional information regarding forecast for the quarter ending June 30, 2011:
| | - | | Revenue is forecasted to be in excess of $140 million in the quarter ending June 30, 2011 |
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| | - | | Adjusted EBITDA as a percentage of revenue is forecasted to be approximately 31% in the quarter ending June 30, 2011 |
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| | - | | Income from continuing operations as a percentage of revenue is forecasted to be in excess of 8% in the quarter ending June 30, 2011 |
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| | - | | Basic and diluted share count is forecasted to be approximately 58 million and 61 million shares, respectively. The 2.50% and 2.25% Convertible Notes are not expected to be dilutive to income from continuing operations per share during the quarter ending June 30, 2011. |
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| | - | | Basic and diluted income from continuing operations per share is forecasted to be in excess of $0.19 and $0.18, respectively. |
Additional information regarding full year forecast:
| | - | | Income tax rate for 2011 is forecasted to be approximately 42% of pretax income. |
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| | - | | The distribution of the annual revenue is expected to be approximately 86% public portals advertising and sponsorship and 14% 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, other than actual activity related to the quarter ended March 2011. |
Additional information regarding full year income per share calculation:
| | - | | Basic income per share: Reflects a reduction to net income of $0.6 million to consider the effect of restricted stock. |
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| | - | | Diluted income per share: Reflects an increase to income from continuing operations of $6.7 million and $5.2 million related to the interest expense (net of tax) on the 2.50% and 2.25% Convertible Notes, respectively, offset by a reduction to income from continuing operations of $0.6 million to consider the effect of restricted stock. The diluted share count reflects an additional 6 million and 4 million shares, related to the 2.50% and 2.25% Convertible Notes, respectively. |
