Exhibit 99.3
FINANCIAL GUIDANCE SUMMARY
WebMD Health Corp
2011 Financial Guidance
(in millions, except per share amounts)
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 | ) | ||||
Gain on investments | 14.1 | 14.1 | ||||||
Other expense, net | (0.1 | ) | (0.1 | ) | ||||
Pre-tax income from continuing operations | 137.8 | 157.8 | ||||||
Income tax provision | (58.0 | ) | (66.0 | ) | ||||
Income from continuing operations | $ | 79.8 | $ | 91.8 | ||||
Income from continuing operations per share: | ||||||||
Basic | $ | 1.34 | $ | 1.55 | ||||
Diluted | $ | 1.28 | $ | 1.45 | ||||
Weighted-average shares outstanding used in computing income from continuing operations per common share: | ||||||||
Basic | 59 | 59 | ||||||
Diluted | 71 | 71 |
(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 quarter ending June 30, 2011:
- | Revenue is forecasted to be in excess of $140 million in the quarter ending June 30, 2011 | ||
- | Adjusted EBITDA as a percentage of revenue is forecasted to be approximately 31% in the quarter ending June 30, 2011 | ||
- | Income from continuing operations as a percentage of revenue is forecasted to be in excess of 8% in the quarter ending June 30, 2011 | ||
- | 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. | ||
- | 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. | ||
- | 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. | ||
- | 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. | ||
- | 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. |