Exhibit 99.2
WEBMD HEALTH CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data, unaudited)
Three Months Ended March 31, | ||||||||
2012 | 2011 | |||||||
Revenue | $ | 106,947 | $ | 131,609 | ||||
Cost of operations | 53,471 | 48,449 | ||||||
Sales and marketing | 30,103 | 32,294 | ||||||
General and administrative | 29,022 | 22,821 | ||||||
Depreciation and amortization | 6,930 | 6,424 | ||||||
Interest income | 11 | 16 | ||||||
Interest expense | 5,836 | 3,141 | ||||||
Gain on investments | 8,074 | 14,060 | ||||||
Other expense | 1,200 | 53 | ||||||
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(Loss) income before income tax (benefit) provision | (11,530) | 32,503 | ||||||
Income tax (benefit) provision | (3,753) | 12,958 | ||||||
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Net (loss) income | $ | (7,777) | $ | 19,545 | ||||
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Net (loss) income per common share: | ||||||||
Basic | $ | (0.14) | $ | 0.33 | ||||
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Diluted | $ | (0.14) | $ | 0.32 | ||||
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Weighted-average shares outstanding used in computing (loss) income per common share: | ||||||||
Basic | 55,769 | 58,184 | ||||||
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Diluted | 55,769 | 67,173 | ||||||
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WEBMD HEALTH CORP.
CONSOLIDATED SUPPLEMENTAL FINANCIAL INFORMATION
(In thousands, unaudited)
$XXX,XXX,X | $XXX,XXX,X | |||||||
Three Months Ended March 31, | ||||||||
2012 | 2011 | |||||||
Revenue | ||||||||
Public portal advertising and sponsorship | $ | 87,776 | $ | 110,363 | ||||
Private portal services | 19,171 | 21,246 | ||||||
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$ | 106,947 | $ | 131,609 | |||||
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Earnings before interest, taxes, non-cash and other items (“Adjusted EBITDA”) (a) | $ | 11,251 | $ | 37,858 | ||||
Interest, taxes, non-cash and other items (b) | ||||||||
Interest income | 11 | 16 | ||||||
Interest expense | (5,836) | (3,141) | ||||||
Income tax benefit (provision) | 3,753 | (12,958) | ||||||
Depreciation and amortization | (6,930) | (6,424) | ||||||
Non-cash stock-based compensation | (16,900) | (9,813) | ||||||
Gain on investments | 8,074 | 14,060 | ||||||
Other expense | (1,200) | (53) | ||||||
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Net (loss) income | $ | (7,777) | $ | 19,545 | ||||
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(a) | See Annex A-Explanation of Non-GAAP Financial Measures. |
(b) | Reconciliation of Adjusted EBITDA to net (loss) income. |
WEBMD HEALTH CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
March 31, 2012 | December 31, 2011 | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 1,142,066 | $ | 1,121,217 | ||||
Accounts receivable, net | 97,445 | 121,335 | ||||||
Prepaid expenses and other current assets | 15,442 | 12,690 | ||||||
Deferred tax assets | 21,316 | 20,482 | ||||||
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Total current assets | 1,276,269 | 1,275,724 | ||||||
Property and equipment, net | 53,621 | 57,139 | ||||||
Goodwill | 202,104 | 202,104 | ||||||
Intangible assets, net | 19,343 | 19,999 | ||||||
Deferred tax assets | 51,953 | 55,017 | ||||||
Other assets | 29,957 | 31,042 | ||||||
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Total Assets | $ | 1,633,247 | $ | 1,641,025 | ||||
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Liabilities and Stockholders’ Equity | ||||||||
Accrued expenses | $ | 44,076 | $ | 55,238 | ||||
Deferred revenue | 90,321 | 88,055 | ||||||
Liabilities of discontinued operations | 1,506 | 1,506 | ||||||
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Total current liabilities | 135,903 | 144,799 | ||||||
2.25% convertible notes due 2016 | 400,000 | 400,000 | ||||||
2.50% convertible notes due 2018 | 400,000 | 400,000 | ||||||
Other long-term liabilities | 21,503 | 21,790 | ||||||
Stockholders’ equity | 675,841 | 674,436 | ||||||
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Total Liabilities and Stockholders’ Equity | $ | 1,633,247 | $ | 1,641,025 | ||||
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WEBMD HEALTH CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
Three Months Ended March 31, | ||||||||
2012 | 2011 | |||||||
Cash flows from operating activities: | ||||||||
Net (loss) income | $ | (7,777) | $ | 19,545 | ||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 6,930 | 6,424 | ||||||
Non-cash interest, net | 1,082 | 516 | ||||||
Non-cash stock-based compensation | 16,900 | 9,813 | ||||||
Deferred income taxes | (3,971) | 4,798 | ||||||
Gain on investments | (8,074) | (14,060) | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 23,890 | 5,688 | ||||||
Prepaid expenses and other, net | (4,023) | 622 | ||||||
Accrued expenses and other long-term liabilities | (11,694) | (7,642) | ||||||
Deferred revenue | 2,266 | (219) | ||||||
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Net cash provided by continuing operations | 15,529 | 25,485 | ||||||
Net cash used in discontinued operations | - | (142) | ||||||
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Net cash provided by operating activities | 15,529 | 25,343 | ||||||
Cash flows from investing activities: | ||||||||
Proceeds received from ARS option | 9,269 | 5,240 | ||||||
Purchases of property and equipment | (3,377) | (4,849) | ||||||
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Net cash provided by investing activities | 5,892 | 391 | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from exercise of stock options | 754 | 10,220 | ||||||
Cash used for withholding taxes due on stock-based awards | (911) | (3,172) | ||||||
Net proceeds from issuance of the 2.50% Notes and 2.25% Notes | - | 774,745 | ||||||
Purchases of treasury stock | (415) | (150,000) | ||||||
Excess tax benefit on stock-based awards | - | 7,355 | ||||||
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Net cash (used in) provided by financing activities | (572) | 639,148 | ||||||
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Net increase in cash and cash equivalents | 20,849 | 664,882 | ||||||
Cash and cash equivalents at beginning of period | 1,121,217 | 400,501 | ||||||
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Cash and cash equivalents at end of period | $ | 1,142,066 | $ | 1,065,383 | ||||
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