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 | ||||||||
March 31, | ||||||||
2006 | 2005 | |||||||
Revenue | $ | 50,051 | $ | 33,761 | ||||
Costs and expenses: | ||||||||
Cost of operations | 24,710 | 14,895 | ||||||
Sales and marketing | 15,537 | 10,988 | ||||||
General and administrative | 11,890 | 6,540 | ||||||
Depreciation and amortization | 3,529 | 2,233 | ||||||
Interest income | 1,448 | — | ||||||
Loss before income tax provision | (4,167 | ) | (895 | ) | ||||
Income tax provision | — | 61 | ||||||
Net loss | $ | (4,167 | ) | $ | (956 | ) | ||
Net loss per common share: | ||||||||
Basic and diluted | $ | (0.07 | ) | $ | (0.02 | ) | ||
Weighted-average shares outstanding used in computing basic and diluted net loss per common share: | 56,054 | 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 | ||||||||
March 31, | ||||||||
2006 | 2005 | |||||||
Revenue | ||||||||
Online Services: | ||||||||
Advertising and sponsorship | $ | 32,760 | $ | 22,787 | ||||
Licensing | 11,442 | 5,805 | ||||||
Content syndication and other | 876 | 2,563 | ||||||
Total Online Services | 45,078 | 31,155 | ||||||
Publishing and Other Services | 4,973 | 2,606 | ||||||
$ | 50,051 | $ | 33,761 | |||||
Earnings before interest, taxes, depreciation, amortization and other non-cash items (“Adjusted EBITDA”) | ||||||||
Online Services | $ | 7,861 | $ | 3,819 | ||||
Publishing and Other Services | (1,334 | ) | (247 | ) | ||||
6,527 | 3,572 | |||||||
Adjusted EBITDA per diluted common share (a) | $ | 0.11 | $ | 0.07 | ||||
Interest, taxes, depreciation, amortization and other non-cash items (b) | ||||||||
Interest income | 1,448 | — | ||||||
Depreciation and amortization | (3,529 | ) | (2,233 | ) | ||||
Non-cash advertising | (1,605 | ) | (1,751 | ) | ||||
Non-cash stock-based compensation | (7,008 | ) | (483 | ) | ||||
Income tax provision | — | (61 | ) | |||||
Net loss | $ | (4,167 | ) | $ | (956 | ) | ||
Net loss per common share: | ||||||||
Basic and diluted | $ | (0.07 | ) | $ | (0.02 | ) | ||
Weighted-average shares outstanding used in computing basic and diluted net loss per common share: | ||||||||
Basic and diluted | 56,054 | 48,100 | ||||||
(a) | Three months ended March 31, 2006 Adjusted EBITDA is calculated based on 57,717 diluted shares | |
(b) | Reconciliation of Adjusted EBITDA to net loss |
WEBMD HEALTH CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
March 31, | December 31, | |||||||
2006 | 2005 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 38,347 | $ | 75,704 | ||||
Short-term investments | 94,456 | 78,073 | ||||||
Accounts receivable, net | 54,914 | 57,245 | ||||||
Current portion of prepaid advertising | 6,524 | 7,424 | ||||||
Other current assets | 5,178 | 3,977 | ||||||
Total current assets | 199,419 | 222,423 | ||||||
Property and equipment, net | 26,796 | 21,014 | ||||||
Prepaid advertising | 11,399 | 12,104 | ||||||
Goodwill | 117,495 | 100,669 | ||||||
Intangible assets, net | 27,065 | 20,503 | ||||||
Other assets | 130 | 176 | ||||||
$ | 382,304 | $ | 376,889 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accrued expenses | $ | 23,499 | $ | 30,400 | ||||
Deferred revenue | 48,665 | 36,495 | ||||||
Due to Emdeon | 1,130 | 3,672 | ||||||
Total current liabilities | 73,294 | 70,567 | ||||||
Other long-term liabilities | 7,008 | 7,010 | ||||||
Stockholders’ equity | 302,002 | 299,312 | ||||||
$ | 382,304 | $ | 376,889 | |||||
WEBMD HEALTH CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
Three Months Ended | ||||||||
March 31, | ||||||||
2006 | 2005 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (4,167 | ) | $ | (956 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 3,529 | 2,233 | ||||||
Non-cash advertising | 1,605 | 1,751 | ||||||
Non-cash stock-based compensation | 7,008 | 483 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 4,048 | 5,724 | ||||||
Other assets | (1,722 | ) | (488 | ) | ||||
Accrued expenses and other long-term liabilities | (5,287 | ) | (1,449 | ) | ||||
Due to Emdeon | (2,521 | ) | — | |||||
Deferred revenue | 9,784 | (1,124 | ) | |||||
Net cash provided by operating activities | 12,277 | 6,174 | ||||||
Cash flows from investing activities: | ||||||||
Proceeds from maturities and sales of available-for-sale securities | 23,650 | — | ||||||
Purchases of available-for-sale securities | (39,650 | ) | — | |||||
Purchases of property and equipment | (6,757 | ) | (932 | ) | ||||
Cash paid in business combinations, net of cash acquired | (26,877 | ) | (30,308 | ) | ||||
Net cash used in investing activities | (49,634 | ) | (31,240 | ) | ||||
Cash flows from financing activities: | ||||||||
Net cash transfers from Emdeon | — | 25,450 | ||||||
Net cash provided by financing activities | — | 25,450 | ||||||
Net (decrease) increase in cash and cash equivalents | (37,357 | ) | 384 | |||||
Cash and cash equivalents at beginning of period | 75,704 | 3,456 | ||||||
Cash and cash equivalents at end of period | $ | 38,347 | $ | 3,840 | ||||