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, | ||||||||
2009 | 2008 | |||||||
Revenue | $ | 90,264 | $ | 80,650 | ||||
Costs and expenses: | ||||||||
Cost of operations | 36,565 | 30,927 | ||||||
Sales and marketing | 27,561 | 25,149 | ||||||
General and administrative | 14,726 | 13,480 | ||||||
Depreciation and amortization | 6,937 | 6,672 | ||||||
Interest income | 975 | 3,453 | ||||||
Impairment of auction rate securities | — | 27,406 | ||||||
Income (loss) from continuing operations before income tax provision | 5,450 | (19,531 | ) | |||||
Income tax provision | 2,211 | 3,432 | ||||||
Income (loss) from continuing operations | 3,239 | (22,963 | ) | |||||
Loss from discontinued operations, net of tax | (423 | ) | (372 | ) | ||||
Net income (loss) | $ | 2,816 | $ | (23,335 | ) | |||
Basic and diluted income (loss) per common share: | ||||||||
Income (loss) from continuing operations | $ | 0.06 | $ | (0.40 | ) | |||
Loss from discontinued operations | (0.01 | ) | (0.00 | ) | ||||
Net income (loss) | $ | 0.05 | $ | (0.40 | ) | |||
Weighted-average shares outstanding used in computing basic and diluted net income (loss) per common share: | ||||||||
Basic | 57,575 | 57,636 | ||||||
Diluted | 58,109 | 57,636 | ||||||
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, | ||||||||
2009 | 2008 | |||||||
Revenue | ||||||||
Advertising and sponsorship | $ | 65,428 | $ | 56,482 | ||||
Licensing | 22,975 | 21,923 | ||||||
1,861 | 2,245 | |||||||
$ | 90,264 | $ | 80,650 | |||||
Earnings before interest, taxes, non-cash and other items (“Adjusted EBITDA”) (a) | $ | 18,688 | $ | 16,332 | ||||
Adjusted EBITDA per basic and diluted common share | $ | 0.32 | $ | 0.28 | ||||
Interest, taxes, non-cash and other items (b) | ||||||||
Interest income | 975 | 3,453 | ||||||
Depreciation and amortization | (6,937 | ) | (6,672 | ) | ||||
Non-cash advertising | (1,753 | ) | (1,558 | ) | ||||
Non-cash stock-based compensation | (5,523 | ) | (3,680 | ) | ||||
Impairment of auction rate securities | — | (27,406 | ) | |||||
Income tax provision | (2,211 | ) | (3,432 | ) | ||||
Income (loss) from continuing operations | 3,239 | (22,963 | ) | |||||
Loss from discontinued operations, net of tax | (423 | ) | (372 | ) | ||||
Net income (loss) | $ | 2,816 | $ | (23,335 | ) | |||
Basic and diluted income (loss) per common share: | ||||||||
Income (loss) from continuing operations | $ | 0.06 | $ | (0.40 | ) | |||
Loss from discontinued operations | (0.01 | ) | (0.00 | ) | ||||
Net income (loss) | $ | 0.05 | $ | (0.40 | ) | |||
Weighted-average shares outstanding used in computing basic and diluted net income (loss) per common share: | ||||||||
Basic | 57,575 | 57,636 | ||||||
Diluted | 58,109 | 57,636 | ||||||
(a) | See Annex A — Explanation of Non-GAAP Financial Measures | |
(b) | Reconciliation of Adjusted EBITDA to net income (loss) |
WEBMD HEALTH CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
March 31, 2009 | December 31, 2008 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 204,803 | $ | 191,659 | ||||
Accounts receivable, net | 90,835 | 93,082 | ||||||
Current portion of prepaid advertising | — | 1,753 | ||||||
Other current assets | 11,319 | 11,358 | ||||||
Assets of discontinued operations | 11,839 | 12,575 | ||||||
Total current assets | 318,796 | 310,427 | ||||||
Investments | 127,033 | 133,563 | ||||||
Property and equipment, net | 54,132 | 54,165 | ||||||
Goodwill | 208,967 | 208,967 | ||||||
Intangible assets, net | 24,520 | 26,237 | ||||||
Other assets | 21,269 | 22,573 | ||||||
$ | 754,717 | $ | 755,932 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accrued expenses | $ | 20,355 | $ | 31,241 | ||||
Deferred revenue | 84,574 | 79,613 | ||||||
Due to HLTH | 199 | 427 | ||||||
Liabilities of discontinued operations | 3,256 | 2,599 | ||||||
Total current liabilities | 108,384 | 113,880 | ||||||
Other long-term liabilities | 8,081 | 8,334 | ||||||
Stockholders’ equity | 638,252 | 633,718 | ||||||
$ | 754,717 | $ | 755,932 | |||||
WEBMD HEALTH CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
Three Months Ended March 31, | ||||||||
2009 | 2008 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | 2,816 | $ | (23,335 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Loss from discontinued operations, net of tax | 423 | 372 | ||||||
Depreciation and amortization | 6,937 | 6,672 | ||||||
Non-cash advertising | 1,753 | 1,558 | ||||||
Non-cash stock-based compensation | 5,523 | 3,680 | ||||||
Deferred and other income taxes | 2,097 | 2,372 | ||||||
Impairment of auction rate securities | — | 27,406 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 2,247 | 10,449 | ||||||
Other assets | (689 | ) | (164 | ) | ||||
Accrued expenses and other long-term liabilities | (11,140 | ) | (8,791 | ) | ||||
Due to HLTH | (228 | ) | 1,329 | |||||
Deferred revenue | 4,961 | 11,231 | ||||||
Net cash provided by continuing operations | 14,700 | 32,779 | ||||||
Net cash provided by discontinued operations | 1,062 | 1,912 | ||||||
Net cash provided by operating activities | 15,762 | 34,691 | ||||||
Cash flows from investing activities: | ||||||||
Proceeds from maturities and sales of available-for-sale securities | 600 | 40,350 | ||||||
Purchases of available-for-sale securities | — | (127,900 | ) | |||||
Purchases of property and equipment | (5,290 | ) | (2,626 | ) | ||||
Cash received from sale of business, net of fees | 250 | 985 | ||||||
Net cash used in continuing operations | (4,440 | ) | (89,191 | ) | ||||
Net cash used by discontinued operations | (5 | ) | (11 | ) | ||||
Net cash used in investing activities | (4,445 | ) | (89,202 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of common stock | 1,827 | 589 | ||||||
Net cash provided by financing activities | 1,827 | 589 | ||||||
Net increase (decrease) in cash and cash equivalents | 13,144 | (53,922 | ) | |||||
Cash and cash equivalents at beginning of period | 191,659 | 213,753 | ||||||
Cash and cash equivalents at end of period | $ | 204,803 | $ | 159,831 | ||||