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 | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
Revenue | $ | 56,612 | $ | 40,979 | $ | 106,663 | $ | 74,740 | ||||||||
Costs and expenses: | ||||||||||||||||
Cost of operations | 25,716 | 18,616 | 50,426 | 33,511 | ||||||||||||
Sales and marketing | 16,932 | 12,141 | 32,469 | 23,129 | ||||||||||||
General and administrative | 12,565 | 8,665 | 24,455 | 15,205 | ||||||||||||
Depreciation and amortization | 4,013 | 3,019 | 7,542 | 5,252 | ||||||||||||
Interest income | 1,468 | — | 2,916 | — | ||||||||||||
Loss before income tax provision | (1,146 | ) | (1,462 | ) | (5,313 | ) | (2,357 | ) | ||||||||
Income tax provision | 12 | 91 | 12 | 152 | ||||||||||||
Net loss | $ | (1,158 | ) | $ | (1,553 | ) | $ | (5,325 | ) | $ | (2,509 | ) | ||||
Net loss per common share: | ||||||||||||||||
Basic and diluted | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.09 | ) | $ | (0.05 | ) | ||||
Weighted-average shares outstanding used in computing basic and diluted net loss per common share: | 56,054 | 48,100 | 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 | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
Revenue | ||||||||||||||||
Online Services: | ||||||||||||||||
Advertising and sponsorship | $ | 36,219 | $ | 26,656 | $ | 68,979 | $ | 49,443 | ||||||||
Licensing | 12,304 | 8,239 | 23,746 | 14,044 | ||||||||||||
Content syndication and other | 1,096 | 2,010 | 1,972 | 4,573 | ||||||||||||
Total Online Services | 49,619 | 36,905 | 94,697 | 68,060 | ||||||||||||
Publishing and Other Services | 6,993 | 4,074 | 11,966 | 6,680 | ||||||||||||
$ | 56,612 | $ | 40,979 | $ | 106,663 | $ | 74,740 | |||||||||
Earnings (loss) before interest, taxes, depreciation, amortization and other non-cash items (“Adjusted EBITDA”) | ||||||||||||||||
Online Services | $ | 9,006 | $ | 3,974 | $ | 16,867 | $ | 7,793 | ||||||||
Publishing and Other Services | 593 | (668 | ) | (741 | ) | (915 | ) | |||||||||
9,599 | 3,306 | 16,126 | 6,878 | |||||||||||||
Adjusted EBITDA per diluted common share (a) | $ | 0.17 | $ | 0.07 | $ | 0.28 | $ | 0.14 | ||||||||
Interest, taxes, depreciation, amortization and other non-cash items (b) | ||||||||||||||||
Interest income | 1,468 | — | 2,916 | — | ||||||||||||
Depreciation and amortization | (4,013 | ) | (3,019 | ) | (7,542 | ) | (5,252 | ) | ||||||||
Non-cash advertising | (1,189 | ) | (1,663 | ) | (2,794 | ) | (3,414 | ) | ||||||||
Non-cash stock-based compensation | (7,011 | ) | (86 | ) | (14,019 | ) | (569 | ) | ||||||||
Income tax provision | (12 | ) | (91 | ) | (12 | ) | (152 | ) | ||||||||
Net loss | $ | (1,158 | ) | $ | (1,553 | ) | $ | (5,325 | ) | $ | (2,509 | ) | ||||
Net loss per common share: | ||||||||||||||||
Basic and diluted | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.09 | ) | $ | (0.05 | ) | ||||
Weighted-average shares outstanding used in computing basic and diluted net loss per common share: | ||||||||||||||||
Basic and diluted | 56,054 | 48,100 | 56,054 | 48,100 | ||||||||||||
(a) | Three and six months ended June 30, 2006 Adjusted EBITDA is calculated based on 58,092 and 57,905 diluted shares, respectively. | |
(b) | Reconciliation of Adjusted EBITDA to net loss (see Annex A — Explanation of Non-GAAP Financial Measures). |
WEBMD HEALTH CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
June 30, | December 31, | |||||||
2006 | 2005 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 4,620 | $ | 75,704 | ||||
Short-term investments | 99,655 | 78,073 | ||||||
Accounts receivable, net | 55,814 | 57,245 | ||||||
Current portion of prepaid advertising | 5,625 | 7,424 | ||||||
Other current assets | 6,522 | 3,977 | ||||||
Total current assets | 172,236 | 222,423 | ||||||
Property and equipment, net | 32,108 | 21,014 | ||||||
Prepaid advertising | 11,110 | 12,104 | ||||||
Goodwill | 142,427 | 100,669 | ||||||
Intangible assets, net | 32,109 | 20,503 | ||||||
Other assets | 170 | 176 | ||||||
$ | 390,160 | $ | 376,889 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accrued expenses | $ | 21,715 | $ | 30,400 | ||||
Deferred revenue | 50,191 | 36,495 | ||||||
Due to Emdeon | 3,005 | 3,672 | ||||||
Total current liabilities | 74,911 | 70,567 | ||||||
Other long-term liabilities | 7,460 | 7,010 | ||||||
Stockholders’ equity | 307,789 | 299,312 | ||||||
$ | 390,160 | $ | 376,889 | |||||
WEBMD HEALTH CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
Six Months Ended | ||||||||
June 30, | ||||||||
2006 | 2005 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (5,325 | ) | $ | (2,509 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 7,542 | 5,252 | ||||||
Non-cash advertising | 2,794 | 3,414 | ||||||
Non-cash stock-based compensation | 14,019 | 569 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 4,221 | 1,173 | ||||||
Other assets | (2,945 | ) | (1,156 | ) | ||||
Accrued expenses and other long-term liabilities | (1,364 | ) | 2,032 | |||||
Due to Emdeon | (667 | ) | — | |||||
Deferred revenue | 9,984 | 4,587 | ||||||
Net cash provided by operating activities | 28,259 | 13,362 | ||||||
Cash flows from investing activities: | ||||||||
Proceeds from maturities and sales of available-for-sale securities | 171,000 | — | ||||||
Purchases of available-for-sale securities | (192,000 | ) | — | |||||
Purchases of property and equipment | (12,775 | ) | (14,207 | ) | ||||
Cash paid in business combinations, net of cash acquired | (65,568 | ) | (30,612 | ) | ||||
Net cash used in investing activities | (99,343 | ) | (44,819 | ) | ||||
Cash flows from financing activities: | ||||||||
Net cash transfers from Emdeon | — | 29,835 | ||||||
Net cash provided by financing activities | — | 29,835 | ||||||
Net decrease in cash and cash equivalents | (71,084 | ) | (1,622 | ) | ||||
Cash and cash equivalents at beginning of period | 75,704 | 3,456 | ||||||
Cash and cash equivalents at end of period | $ | 4,620 | $ | 1,834 | ||||