Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - WebMD Health Corp. | g21057e8vk.htm |
| EX-99.4 - EX-99.4 - WebMD Health Corp. | g21057exv99w4.htm |
| EX-99.1 - EX-99.1 - WebMD Health Corp. | g21057exv99w1.htm |
| EX-99.5 - EX-99.5 - WebMD Health Corp. | g21057exv99w5.htm |
| EX-99.3 - EX-99.3 - WebMD Health Corp. | g21057exv99w3.htm |
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 | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
Revenue |
$ | 111,568 | $ | 96,797 | $ | 300,463 | $ | 263,451 | ||||||||
Cost of operations |
41,965 | 34,225 | 117,759 | 97,120 | ||||||||||||
Sales and marketing |
26,265 | 26,021 | 80,623 | 76,068 | ||||||||||||
General and administrative |
15,961 | 14,774 | 45,826 | 42,465 | ||||||||||||
Depreciation and amortization |
6,988 | 7,056 | 20,729 | 20,815 | ||||||||||||
Interest income |
834 | 2,616 | 2,733 | 8,419 | ||||||||||||
Impairment of auction rate securities |
— | — | — | 27,406 | ||||||||||||
Income from continuing operations before income tax provision |
21,223 | 17,337 | 38,259 | 7,996 | ||||||||||||
Income tax provision |
8,622 | 7,375 | 15,469 | 15,308 | ||||||||||||
Income (loss) from continuing operations |
12,601 | 9,962 | 22,790 | (7,312 | ) | |||||||||||
Income (loss) from discontinued operations, net of tax |
190 | 804 | (5,100 | ) | 1,095 | |||||||||||
Net income (loss) |
$ | 12,791 | $ | 10,766 | $ | 17,690 | $ | (6,217 | ) | |||||||
Basic income (loss) per common share: |
||||||||||||||||
Income (loss) from continuing operations |
$ | 0.22 | $ | 0.17 | $ | 0.39 | $ | (0.13 | ) | |||||||
Income (loss) from discontinued operations |
0.00 | 0.02 | (0.09 | ) | 0.02 | |||||||||||
Net income (loss) |
$ | 0.22 | $ | 0.19 | $ | 0.30 | $ | (0.11 | ) | |||||||
Diluted income (loss) per common share: |
||||||||||||||||
Income (loss) from continuing operations |
$ | 0.21 | $ | 0.17 | $ | 0.39 | $ | (0.13 | ) | |||||||
Income (loss) from discontinued operations |
0.00 | 0.01 | (0.09 | ) | 0.02 | |||||||||||
Net income (loss) |
$ | 0.21 | $ | 0.18 | $ | 0.30 | $ | (0.11 | ) | |||||||
Weighted-average shares outstanding used in computing
basic and diluted net income (loss) per common share: |
||||||||||||||||
Basic |
57,777 | 57,770 | 57,676 | 57,699 | ||||||||||||
Diluted |
58,844 | 59,111 | 58,445 | 57,699 | ||||||||||||
WEBMD HEALTH CORP.
CONSOLIDATED SUPPLEMENTAL FINANCIAL INFORMATION
(In thousands, except per share data, unaudited)
CONSOLIDATED SUPPLEMENTAL FINANCIAL INFORMATION
(In thousands, except per share data, unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
Revenue |
||||||||||||||||
Public portal advertising and sponsorship |
$ | 89,414 | $ | 74,658 | $ | 232,695 | $ | 197,523 | ||||||||
Private portal services |
22,154 | 22,139 | 67,768 | 65,928 | ||||||||||||
| $ | 111,568 | $ | 96,797 | $ | 300,463 | $ | 263,451 | |||||||||
Earnings before interest, taxes, non-cash
and other items (“Adjusted EBITDA”) (a) |
$ | 33,123 | $ | 25,467 | $ | 75,029 | $ | 60,191 | ||||||||
Adjusted EBITDA per basic common share |
$ | 0.57 | $ | 0.44 | $ | 1.30 | $ | 1.04 | ||||||||
Adjusted EBITDA per diluted common share |
$ | 0.56 | $ | 0.43 | $ | 1.28 | $ | 1.04 | ||||||||
Interest, taxes, non-cash and other items (b) |
||||||||||||||||
Interest income |
834 | 2,616 | 2,733 | 8,419 | ||||||||||||
Depreciation and amortization |
(6,988 | ) | (7,056 | ) | (20,729 | ) | (20,815 | ) | ||||||||
Non-cash advertising |
— | (178 | ) | (1,753 | ) | (1,736 | ) | |||||||||
Non-cash stock-based compensation |
(5,746 | ) | (3,512 | ) | (17,021 | ) | (10,657 | ) | ||||||||
Impairment of auction rate securities |
— | — | — | (27,406 | ) | |||||||||||
Income tax provision |
(8,622 | ) | (7,375 | ) | (15,469 | ) | (15,308 | ) | ||||||||
Income (loss) from continuing operations |
12,601 | 9,962 | 22,790 | (7,312 | ) | |||||||||||
Income (loss) from discontinued operations, net of tax |
190 | 804 | (5,100 | ) | 1,095 | |||||||||||
Net income (loss) |
$ | 12,791 | $ | 10,766 | $ | 17,690 | $ | (6,217 | ) | |||||||
Basic income (loss) per common share: |
||||||||||||||||
Income (loss) from continuing operations |
$ | 0.22 | $ | 0.17 | $ | 0.39 | $ | (0.13 | ) | |||||||
Income (loss) from discontinued operations |
0.00 | 0.02 | (0.09 | ) | 0.02 | |||||||||||
Net income (loss) |
$ | 0.22 | $ | 0.19 | $ | 0.30 | $ | (0.11 | ) | |||||||
Diluted income (loss) per common share: |
||||||||||||||||
Income (loss) from continuing operations |
$ | 0.21 | $ | 0.17 | $ | 0.39 | $ | (0.13 | ) | |||||||
Income (loss) from discontinued operations |
0.00 | 0.01 | (0.09 | ) | 0.02 | |||||||||||
Net income (loss) |
$ | 0.21 | $ | 0.18 | $ | 0.30 | $ | (0.11 | ) | |||||||
Weighted-average shares outstanding used in computing
per share amounts: |
||||||||||||||||
Basic |
57,777 | 57,770 | 57,676 | 57,699 | ||||||||||||
Diluted |
58,844 | 59,111 | 58,445 | 57,699 | ||||||||||||
| (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)
| September 30, 2009 | December 31, 2008 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 275,250 | $ | 191,659 | ||||
Accounts receivable, net |
87,072 | 93,082 | ||||||
Current portion of prepaid advertising |
— | 1,753 | ||||||
Other current assets |
9,286 | 11,358 | ||||||
Assets of discontinued operations |
— | 12,575 | ||||||
Total current assets |
371,608 | 310,427 | ||||||
Investments |
126,564 | 133,563 | ||||||
Property and equipment, net |
52,286 | 54,165 | ||||||
Goodwill |
208,967 | 208,967 | ||||||
Intangible assets, net |
21,416 | 26,237 | ||||||
Other assets |
13,259 | 22,573 | ||||||
| $ | 794,100 | $ | 755,932 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
Current liabilities: |
||||||||
Accrued expenses |
$ | 31,760 | $ | 31,241 | ||||
Deferred revenue |
83,861 | 79,613 | ||||||
Due to HLTH |
1,378 | 427 | ||||||
Liabilities of discontinued operations |
— | 2,599 | ||||||
Total current liabilities |
116,999 | 113,880 | ||||||
Other long-term liabilities |
7,539 | 8,334 | ||||||
Stockholders’ equity |
669,562 | 633,718 | ||||||
| $ | 794,100 | $ | 755,932 | |||||
WEBMD HEALTH CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
| Nine Months Ended September 30, | ||||||||
| 2009 | 2008 | |||||||
Cash flows from operating activities: |
||||||||
Net income (loss) |
$ | 17,690 | $ | (6,217 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by
operating activities: |
||||||||
Loss (income) from discontinued operations, net of tax |
5,100 | (1,095 | ) | |||||
Depreciation and amortization |
20,729 | 20,815 | ||||||
Non-cash advertising |
1,753 | 1,736 | ||||||
Non-cash stock-based compensation |
17,021 | 10,657 | ||||||
Deferred and other income taxes |
14,835 | 14,977 | ||||||
Impairment of auction rate securities |
— | 27,406 | ||||||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
6,010 | 6,275 | ||||||
Other assets |
(587 | ) | (2,651 | ) | ||||
Accrued expenses and other long-term liabilities |
(276 | ) | (286 | ) | ||||
Due to HLTH |
951 | 563 | ||||||
Deferred revenue |
4,248 | 5,367 | ||||||
Net cash provided by continuing operations |
87,474 | 77,547 | ||||||
Net cash provided by discontinued operations |
728 | 3,205 | ||||||
Net cash provided by operating activities |
88,202 | 80,752 | ||||||
Cash flows from investing activities: |
||||||||
Proceeds from maturities and sales of available-for-sale securities |
1,800 | 43,300 | ||||||
Purchases of available-for-sale securities |
— | (127,900 | ) | |||||
Purchases of property and equipment |
(14,131 | ) | (15,014 | ) | ||||
Cash
received from sale of businesses, net of fees |
2,840 | 1,133 | ||||||
Net cash used in continuing operations |
(9,491 | ) | (98,481 | ) | ||||
Net cash used in discontinued operations |
(8 | ) | (40 | ) | ||||
Net cash used in investing activities |
(9,499 | ) | (98,521 | ) | ||||
Cash flows from financing activities: |
||||||||
Proceeds from issuance of common stock |
4,823 | 3,453 | ||||||
Tax benefit on stock-based awards |
65 | 315 | ||||||
Net cash provided by financing activities |
4,888 | 3,768 | ||||||
Net increase (decrease) in cash and cash equivalents |
83,591 | (14,001 | ) | |||||
Cash and cash equivalents at beginning of period |
191,659 | 213,753 | ||||||
Cash and cash equivalents at end of period |
$ | 275,250 | $ | 199,752 | ||||