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 | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2005 | 2004 | 2005 | 2004 | |||||||||||||
Revenue | $ | 45,094 | $ | 36,975 | $ | 119,834 | $ | 95,051 | ||||||||
Costs and expenses: | ||||||||||||||||
Cost of operations | 18,020 | 13,336 | 51,531 | 37,771 | ||||||||||||
Sales and marketing | 13,534 | 12,080 | 36,663 | 35,326 | ||||||||||||
General and administrative | 6,582 | 5,493 | 21,787 | 15,506 | ||||||||||||
Depreciation and amortization | 2,733 | 1,247 | 7,985 | 3,762 | ||||||||||||
Interest income | (10 | ) | — | (10 | ) | — | ||||||||||
Income before income tax provision | 4,235 | 4,819 | 1,878 | 2,686 | ||||||||||||
Income tax provision | 112 | 61 | 264 | 152 | ||||||||||||
Net income | $ | 4,123 | $ | 4,758 | $ | 1,614 | $ | 2,534 | ||||||||
Net income per common share: | ||||||||||||||||
Basic | $ | 0.09 | $ | 0.10 | $ | 0.03 | $ | 0.05 | ||||||||
Diluted | $ | 0.09 | $ | 0.10 | $ | 0.03 | $ | 0.05 | ||||||||
Weighted-average shares outstanding used in computing net income per common share: | ||||||||||||||||
Basic | 48,273 | 48,100 | 48,158 | 48,100 | ||||||||||||
Diluted | 48,302 | 48,100 | 48,167 | 48,100 | ||||||||||||
WEBMD HEALTH CORP.
CONSOLIDATED SEGMENT INFORMATION
(In thousands, except per share data, unaudited)
CONSOLIDATED SEGMENT INFORMATION
(In thousands, except per share data, unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2005 | 2004 | 2005 | 2004 | |||||||||||||
Revenues | ||||||||||||||||
Online Services: | ||||||||||||||||
Advertising and sponsorship | $ | 28,054 | $ | 22,590 | $ | 77,497 | $ | 57,830 | ||||||||
Licensing | 9,053 | 4,257 | 23,097 | 10,212 | ||||||||||||
Content syndication and other | 2,124 | 4,683 | 6,697 | 15,080 | ||||||||||||
Total Online Services | 39,231 | 31,530 | 107,291 | 83,122 | ||||||||||||
Publishing Services | 5,863 | 5,445 | 12,543 | 11,929 | ||||||||||||
$ | 45,094 | $ | 36,975 | $ | 119,834 | $ | 95,051 | |||||||||
Earnings before interest, taxes, depreciation, amortization and other non-cash items | ||||||||||||||||
Online Services | $ | 7,795 | $ | 6,349 | $ | 15,588 | $ | 15,319 | ||||||||
Publishing Services | 1,282 | 2,060 | 367 | 2,163 | ||||||||||||
9,077 | 8,409 | 15,955 | 17,482 | |||||||||||||
Basic earnings per common share before interest, taxes, depreciation, amortization and other non-cash items (a) | $ | 0.19 | $ | 0.17 | $ | 0.33 | $ | 0.36 | ||||||||
Diluted earnings per common share before interest, taxes, depreciation, amortization and other non-cash items (a) | $ | 0.19 | $ | 0.17 | $ | 0.33 | $ | 0.36 | ||||||||
Interest, taxes, depreciation, amortization and other non-cash items (b) | ||||||||||||||||
Interest income | 10 | — | 10 | — | ||||||||||||
Depreciation and amortization | (2,733 | ) | (1,247 | ) | (7,985 | ) | (3,762 | ) | ||||||||
Non-cash advertising and distribution (included in cost of operations) | (74 | ) | (104 | ) | (291 | ) | (705 | ) | ||||||||
Non-cash advertising and distribution (included in sales and marketing) | (1,633 | ) | (1,701 | ) | (4,830 | ) | (9,134 | ) | ||||||||
Non-cash stock compensation | (412 | ) | (538 | ) | (981 | ) | (1,195 | ) | ||||||||
Income tax provision | (112 | ) | (61 | ) | (264 | ) | (152 | ) | ||||||||
Net income | $ | 4,123 | $ | 4,758 | $ | 1,614 | $ | 2,534 | ||||||||
Net income per common share: | ||||||||||||||||
Basic | $ | 0.09 | $ | 0.10 | $ | 0.03 | $ | 0.05 | ||||||||
Diluted | $ | 0.09 | $ | 0.10 | $ | 0.03 | $ | 0.05 | ||||||||
Weighted-average shares outstanding used in computing net income per common share: | ||||||||||||||||
Basic | 48,273 | 48,100 | 48,158 | 48,100 | ||||||||||||
Diluted | 48,302 | 48,100 | 48,167 | 48,100 | ||||||||||||
(a) | Basic and diluted earnings per common share before interest, taxes, depreciation, amortization and other non-cash items is based on the weighted-average shares outstanding used in computing basic and diluted net income per common share | |
(b) | Reconciliation of earnings before interest, taxes, depreciation, amortization and other non-cash items to net income |
WEBMD HEALTH CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, | December 31, | |||||||
2005 | 2004 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 41,112 | $ | 3,456 | ||||
Stock subscription receivable | 129,142 | — | ||||||
Accounts receivable, net of allowance for doubtful accounts of $821 at September 30, 2005 and $798 at December 31, 2004 | 41,685 | 38,453 | ||||||
Current portion of prepaid advertising | 8,324 | 10,350 | ||||||
Other current assets | 2,276 | 2,619 | ||||||
Total current assets | 222,539 | 54,878 | ||||||
Property and equipment, net | 19,172 | 6,316 | ||||||
Prepaid advertising | 15,075 | 20,047 | ||||||
Goodwill | 77,626 | 52,614 | ||||||
Intangible assets, net | 15,678 | 12,065 | ||||||
Other assets | 178 | 576 | ||||||
$ | 350,268 | $ | 146,496 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accrued expenses | $ | 22,555 | $ | 15,874 | ||||
Deferred revenue | 35,285 | 29,885 | ||||||
Total current liabilities | 57,840 | 45,759 | ||||||
Stockholders’ equity | 292,428 | 100,737 | ||||||
$ | 350,268 | $ | 146,496 | |||||
WEBMD HEALTH CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
Nine Months Ended | ||||||||
September 30, | ||||||||
2005 | 2004 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 1,614 | $ | 2,534 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 7,985 | 3,762 | ||||||
Non-cash advertising and distribution | 5,121 | 9,839 | ||||||
Non-cash stock compensation | 981 | 1,195 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (1,490 | ) | (11,314 | ) | ||||
Other assets | 1,185 | 3,364 | ||||||
Accrued expenses | 2,798 | 3,382 | ||||||
Deferred revenue | 778 | 2,834 | ||||||
Net cash provided by operating activities | 18,972 | 15,596 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (15,587 | ) | (2,612 | ) | ||||
Cash paid in business combinations, net of cash acquired | (30,819 | ) | (1,500 | ) | ||||
Net cash used in investing activities | (46,406 | ) | (4,112 | ) | ||||
Cash flows from financing activities: | ||||||||
Net cash transfers from (to) Emdeon | 65,090 | (10,372 | ) | |||||
Net cash provided by (used in) financing activities | 65,090 | (10,372 | ) | |||||
Net increase in cash and cash equivalents | 37,656 | 1,112 | ||||||
Cash and cash equivalents at beginning of period | 3,456 | 358 | ||||||
Cash and cash equivalents at end of period | $ | 41,112 | $ | 1,470 | ||||