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)
Preliminary | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2007 | 2006 | |||||||
Revenue | $ | 72,962 | $ | 50,051 | ||||
Costs and expenses: | ||||||||
Cost of operations | 29,663 | 24,710 | ||||||
Sales and marketing | 22,870 | 15,537 | ||||||
General and administrative | 15,505 | 11,890 | ||||||
Depreciation and amortization | 5,993 | 3,529 | ||||||
Interest income | 1,985 | 1,448 | ||||||
Income (loss) before income tax provision | 916 | (4,167 | ) | |||||
Income tax provision | 210 | — | ||||||
Net income (loss) | $ | 706 | $ | (4,167 | ) | |||
Net income (loss) per common share: | ||||||||
Basic | $ | 0.01 | $ | (0.07 | ) | |||
Diluted | $ | 0.01 | $ | (0.07 | ) | |||
Weighted-average shares outstanding used in computing basic and diluted net income (loss) per common share: | ||||||||
Basic | 56,976 | 56,054 | ||||||
Diluted | 59,630 | 56,054 | ||||||
WEBMD HEALTH CORP.
CONSOLIDATED SEGMENT INFORMATION
(In thousands, except per share data, unaudited)
CONSOLIDATED SEGMENT INFORMATION
(In thousands, except per share data, unaudited)
Preliminary | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2007 | 2006 | |||||||
Revenue | ||||||||
Online Services: | ||||||||
Advertising and sponsorship | $ | 47,421 | $ | 32,760 | ||||
Licensing | 20,115 | 11,442 | ||||||
Content syndication and other | 884 | 876 | ||||||
Total Online Services | 68,420 | 45,078 | ||||||
Publishing and Other Services | 4,542 | 4,973 | ||||||
$ | 72,962 | $ | 50,051 | |||||
Earnings (loss) before interest, taxes, depreciation, amortization and other non-cash items (“Adjusted EBITDA”) (a) | ||||||||
Online Services | $ | 12,992 | $ | 7,861 | ||||
Publishing and Other Services | (385 | ) | (1,334 | ) | ||||
12,607 | 6,527 | |||||||
Adjusted EBITDA per basic common share | $ | 0.22 | $ | 0.12 | ||||
Adjusted EBITDA per diluted common share (c) | $ | 0.21 | $ | 0.11 | ||||
Interest, taxes, depreciation, amortization and other non-cash items (b) | ||||||||
Interest income | 1,985 | 1,448 | ||||||
Depreciation and amortization | (5,993 | ) | (3,529 | ) | ||||
Non-cash advertising | (2,320 | ) | (1,605 | ) | ||||
Non-cash stock-based compensation | (5,363 | ) | (7,008 | ) | ||||
Income tax provision | (210 | ) | — | |||||
Net income (loss) | $ | 706 | $ | (4,167 | ) | |||
Net income (loss) per common share: | ||||||||
Basic | $ | 0.01 | $ | (0.07 | ) | |||
Diluted | $ | 0.01 | $ | (0.07 | ) | |||
Weighted-average shares outstanding used in computing basic and diluted net income (loss) per common share: | ||||||||
Basic | 56,976 | 56,054 | ||||||
Diluted | 59,630 | 56,054 | ||||||
(a) | See Annex A — Explanation of Non-GAAP Financial Measures | |
(b) | Reconciliation of Adjusted EBITDA to net income | |
(c) | Three months ended March 31, 2006 Adjusted EBITDA per share is calculated based on 57,717 diluted shares |
WEBMD HEALTH CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
Preliminary | ||||||||
March 31, | December 31, | |||||||
2007 | 2006 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 182,124 | $ | 44,660 | ||||
Short-term investments | 30,000 | 9,490 | ||||||
Accounts receivable, net | 87,467 | 89,652 | ||||||
Current portion of prepaid advertising | 1,575 | 2,656 | ||||||
Due from Emdeon | — | 143,153 | ||||||
Other current assets | 5,296 | 5,360 | ||||||
Total current assets | 306,462 | 294,971 | ||||||
Property and equipment, net | 46,690 | 44,709 | ||||||
Prepaid advertising | 8,220 | 9,459 | ||||||
Goodwill | 225,253 | 225,028 | ||||||
Intangible assets, net | 42,054 | 45,268 | ||||||
Other assets | 499 | 530 | ||||||
$ | 629,178 | $ | 619,965 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accrued expenses | $ | 20,162 | $ | 32,846 | ||||
Deferred revenue | 85,447 | 77,731 | ||||||
Due to Emdeon | 2,358 | — | ||||||
Total current liabilities | 107,967 | 110,577 | ||||||
Other long-term liabilities | 9,547 | 7,912 | ||||||
Stockholders’ equity | 511,664 | 501,476 | ||||||
$ | 629,178 | $ | 619,965 | |||||
WEBMD HEALTH CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
Preliminary | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2007 | 2006 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | 706 | $ | (4,167 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 5,993 | 3,529 | ||||||
Non-cash advertising | 2,320 | 1,605 | ||||||
Non-cash stock-based compensation | 5,363 | 7,008 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 2,185 | 4,048 | ||||||
Other assets | (23 | ) | (1,722 | ) | ||||
Accrued expenses and other long-term liabilities | (11,467 | ) | (5,287 | ) | ||||
Due (from) to Emdeon | 228 | (2,521 | ) | |||||
Deferred revenue | 7,716 | 9,784 | ||||||
Net cash provided by operating activities | 13,021 | 12,277 | ||||||
Cash flows from investing activities: | ||||||||
Proceeds from maturities and sales of available-for-sale securities | 28,122 | 23,650 | ||||||
Purchases of available-for-sale securities | (48,632 | ) | (39,650 | ) | ||||
Purchases of property and equipment | (4,762 | ) | (6,757 | ) | ||||
Cash paid in business combinations, net of cash acquired | — | (26,877 | ) | |||||
Net cash used in investing activities | (25,272 | ) | (49,634 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of common stock | 4,458 | — | ||||||
Net cash transfers with Emdeon | 145,257 | — | ||||||
Net cash provided by financing activities | 149,715 | — | ||||||
Net increase (decrease) in cash and cash equivalents | 137,464 | (37,357 | ) | |||||
Cash and cash equivalents at beginning of period | 44,660 | 75,704 | ||||||
Cash and cash equivalents at end of period | $ | 182,124 | $ | 38,347 | ||||