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-99.2 - EX-99.2 - WebMD Health Corp. | g21057exv99w2.htm |
EX-99.3 - EX-99.3 - WebMD Health Corp. | g21057exv99w3.htm |
Exhibit 99.5
HLTH CORPORATION
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 | |||||||||||||
(a) | (a) | |||||||||||||||
Revenue |
$ | 111,568 | $ | 96,777 | $ | 300,463 | $ | 263,391 | ||||||||
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 |
21,967 | 22,493 | 65,818 | 66,120 | ||||||||||||
Depreciation and amortization |
7,134 | 7,188 | 21,193 | 21,177 | ||||||||||||
Interest income |
1,840 | 9,386 | 6,060 | 29,384 | ||||||||||||
Interest expense |
5,541 | 6,636 | 17,858 | 19,746 | ||||||||||||
Gain on repurchases of convertible notes |
| | 10,120 | | ||||||||||||
Gain on sale of EBS Master LLC |
| | | 538,024 | ||||||||||||
Impairment of auction rate securities |
| | | 60,108 | ||||||||||||
Other expense, net |
123 | 997 | 944 | 5,807 | ||||||||||||
Income from continuing operations before income tax provision |
10,413 | 8,603 | 12,448 | 484,653 | ||||||||||||
Income tax provision |
5,389 | 3,493 | 4,922 | 29,664 | ||||||||||||
Equity in earnings of EBS Master LLC |
| | | 4,007 | ||||||||||||
Consolidated income from continuing operations |
5,024 | 5,110 | 7,526 | 458,996 | ||||||||||||
Consolidated income from discontinued operations, net of tax |
27,462 | 92,647 | 14,695 | 92,641 | ||||||||||||
Consolidated net income inclusive of noncontrolling interest |
32,486 | 97,757 | 22,221 | 551,637 | ||||||||||||
(Income) loss attributable to noncontrolling interest |
(2,184 | ) | (1,845 | ) | (3,181 | ) | 929 | |||||||||
Net income attributable to HLTH stockholders |
$ | 30,302 | $ | 95,912 | $ | 19,040 | $ | 552,566 | ||||||||
Amounts attributable to HLTH stockholders: |
||||||||||||||||
Income from continuing operations |
$ | 2,872 | $ | 3,403 | $ | 3,381 | $ | 460,114 | ||||||||
Income from discontinued operations |
27,430 | 92,509 | 15,659 | 92,452 | ||||||||||||
Net income attributable to HLTH stockholders |
$ | 30,302 | $ | 95,912 | $ | 19,040 | $ | 552,566 | ||||||||
Basic income per common share: |
||||||||||||||||
Income from continuing operations |
$ | 0.03 | $ | 0.02 | $ | 0.03 | $ | 2.52 | ||||||||
Income from discontinued operations |
0.26 | 0.50 | 0.15 | 0.50 | ||||||||||||
Net income attributable to HLTH stockholders |
$ | 0.29 | $ | 0.52 | $ | 0.18 | $ | 3.02 | ||||||||
Diluted income per common share: |
||||||||||||||||
Income from continuing operations |
$ | 0.02 | $ | 0.02 | $ | 0.03 | $ | 2.06 | ||||||||
Income from discontinued operations |
0.25 | 0.49 | 0.15 | 0.41 | ||||||||||||
Net income attributable to HLTH stockholders |
$ | 0.27 | $ | 0.51 | $ | 0.18 | $ | 2.47 | ||||||||
Weighted-average shares outstanding used in
computing income per common share: |
||||||||||||||||
Basic |
103,727 | 183,716 | 102,695 | 182,838 | ||||||||||||
Diluted |
109,380 | 187,527 | 106,136 | 228,653 | ||||||||||||
(a) | The consolidated financial statements for the three and nine months ended September 30, 2008 have been adjusted to reflect (i) the required adoption, effective January 1, 2009, of new authoritative guidance and (ii) the reclassification of WebMDs Little Blue Book print directory business to discontinued operations. |
HLTH CORPORATION
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 | |||||||||||||
(c) | (c) | |||||||||||||||
Revenue |
||||||||||||||||
WebMD: |
||||||||||||||||
Public portal advertising and sponsorship |
$ | 89,414 | $ | 74,658 | $ | 232,695 | $ | 197,523 | ||||||||
Private portal services |
22,154 | 22,139 | 67,768 | 65,928 | ||||||||||||
Inter-segment eliminations |
| (20 | ) | | (60 | ) | ||||||||||
$ | 111,568 | $ | 96,777 | $ | 300,463 | $ | 263,391 | |||||||||
Earnings before interest, taxes, non-cash
and other items (Adjusted EBITDA) (a) |
||||||||||||||||
WebMD |
$ | 33,123 | $ | 25,467 | $ | 75,029 | $ | 60,191 | ||||||||
Corporate |
(2,559 | ) | (4,679 | ) | (9,183 | ) | (15,311 | ) | ||||||||
30,564 | 20,788 | 65,846 | 44,880 | |||||||||||||
Adjusted EBITDA per basic common share |
$ | 0.29 | $ | 0.11 | $ | 0.64 | $ | 0.25 | ||||||||
Adjusted EBITDA per diluted common share |
$ | 0.28 | $ | 0.11 | $ | 0.62 | $ | 0.20 | ||||||||
Interest, taxes, non-cash and other items (b) |
||||||||||||||||
Interest income |
1,840 | 9,386 | 6,060 | 29,384 | ||||||||||||
Interest expense |
(5,541 | ) | (6,636 | ) | (17,858 | ) | (19,746 | ) | ||||||||
Income tax provision |
(5,389 | ) | (3,493 | ) | (4,922 | ) | (29,664 | ) | ||||||||
Depreciation and amortization |
(7,134 | ) | (7,188 | ) | (21,193 | ) | (21,177 | ) | ||||||||
Non-cash stock-based compensation |
(9,217 | ) | (6,468 | ) | (27,783 | ) | (18,856 | ) | ||||||||
Non-cash advertising |
| (178 | ) | (1,753 | ) | (1,736 | ) | |||||||||
Gain on repurchases of convertible notes |
| | 10,120 | | ||||||||||||
Equity in earnings of EBS Master LLC |
| | | 4,007 | ||||||||||||
Gain on sale of EBS Master LLC |
| | | 538,024 | ||||||||||||
Impairment of auction rate securities |
| | | (60,108 | ) | |||||||||||
Other expense, net |
(99 | ) | (1,101 | ) | (991 | ) | (6,012 | ) | ||||||||
Consolidated income from continuing operations |
5,024 | 5,110 | 7,526 | 458,996 | ||||||||||||
Consolidated income from discontinued operations, net of tax |
27,462 | 92,647 | 14,695 | 92,641 | ||||||||||||
Consolidated net income inclusive of noncontrolling interest |
32,486 | 97,757 | 22,221 | 551,637 | ||||||||||||
(Income) loss attributable to noncontrolling interest |
(2,184 | ) | (1,845 | ) | (3,181 | ) | 929 | |||||||||
Net income attributable to HLTH stockholders |
$ | 30,302 | $ | 95,912 | $ | 19,040 | $ | 552,566 | ||||||||
Amounts attributable to HLTH stockholders: |
||||||||||||||||
Income from continuing operations |
$ | 2,872 | $ | 3,403 | $ | 3,381 | $ | 460,114 | ||||||||
Income from discontinued operations |
27,430 | 92,509 | 15,659 | 92,452 | ||||||||||||
Net income attributable to HLTH stockholders |
$ | 30,302 | $ | 95,912 | $ | 19,040 | $ | 552,566 | ||||||||
Basic income per common share: |
||||||||||||||||
Income from continuing operations |
$ | 0.03 | $ | 0.02 | $ | 0.03 | $ | 2.52 | ||||||||
Income from discontinued operations |
0.26 | 0.50 | 0.15 | 0.50 | ||||||||||||
Net income attributable to HLTH stockholders |
$ | 0.29 | $ | 0.52 | $ | 0.18 | $ | 3.02 | ||||||||
Diluted income per common share: |
||||||||||||||||
Income from continuing operations |
$ | 0.02 | $ | 0.02 | $ | 0.03 | $ | 2.06 | ||||||||
Income from discontinued operations |
0.25 | 0.49 | 0.15 | 0.41 | ||||||||||||
Net income attributable to HLTH stockholders |
$ | 0.27 | $ | 0.51 | $ | 0.18 | $ | 2.47 | ||||||||
Weighted-average shares outstanding used in
computing income per common share: |
||||||||||||||||
Basic |
103,727 | 183,716 | 102,695 | 182,838 | ||||||||||||
Diluted |
109,380 | 187,527 | 106,136 | 228,653 | ||||||||||||
(a) | See Annex A-Explanation of Non-GAAP Financial Measures. | |
(b) | Reconciliation of Adjusted EBITDA to consolidated income from continuing operations. | |
(c) | The consolidated financial statements for the three and nine months ended September 30, 2008 have been adjusted to reflect (i) the required adoption, effective January 1, 2009, of new authoritative guidance and (ii) the reclassification of WebMDs Little Blue Book print directory business to discontinued operations. |
HLTH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
September 30, | December 31, | |||||||
2009 | 2008 | |||||||
Assets |
||||||||
Cash and cash equivalents |
$ | 589,553 | $ | 629,848 | ||||
Accounts receivable, net |
87,072 | 93,082 | ||||||
Prepaid expenses and other current assets |
48,102 | 44,740 | ||||||
Assets of discontinued operations |
121,413 | 131,350 | ||||||
Total current assets |
846,140 | 899,020 | ||||||
Investments |
275,217 | 288,049 | ||||||
Property and equipment, net |
54,530 | 56,633 | ||||||
Goodwill |
202,104 | 202,104 | ||||||
Intangible assets, net |
27,385 | 32,328 | ||||||
Other assets |
19,240 | 23,600 | ||||||
Total Assets |
$ | 1,424,616 | $ | 1,501,734 | ||||
Liabilities and Equity |
||||||||
Accrued expenses |
$ | 46,920 | $ | 54,595 | ||||
Deferred revenue |
83,861 | 79,613 | ||||||
Liabilities of discontinued operations |
68,383 | 100,771 | ||||||
Total current liabilities |
199,164 | 234,979 | ||||||
1.75% convertible notes |
264,583 | 350,000 | ||||||
31/8% convertible notes,
net of discount of $24,543 at
September 30, 2009 and
$35,982 at December 31, 2008 |
225,757 | 264,018 | ||||||
Other long-term liabilities |
37,857 | 21,816 | ||||||
HLTH stockholders equity |
538,676 | 496,698 | ||||||
Noncontrolling interest in WHC |
158,579 | 134,223 | ||||||
Equity |
697,255 | 630,921 | ||||||
Total Liabilities and Equity |
$ | 1,424,616 | $ | 1,501,734 | ||||
HLTH CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
Nine Months Ended | ||||||||
September 30, | ||||||||
2009 | 2008 | |||||||
(a) | ||||||||
Cash flows from operating activities: |
||||||||
Consolidated net income inclusive of noncontrolling interest |
$ | 22,221 | $ | 551,637 | ||||
Adjustments to reconcile consolidated net income inclusive of noncontrolling
interest to net cash provided by operating activities: |
||||||||
Consolidated income from discontinued operations, net of tax |
(14,695 | ) | (92,641 | ) | ||||
Depreciation and amortization |
21,193 | 21,177 | ||||||
Non-cash interest expense |
7,737 | 8,123 | ||||||
Non-cash advertising |
1,753 | 1,736 | ||||||
Non-cash stock-based compensation |
27,783 | 18,856 | ||||||
Deferred income taxes |
7,563 | 9,448 | ||||||
Gain on repurchases of convertible notes |
(10,120 | ) | | |||||
Gain on sale of EBS Master LLC |
| (538,024 | ) | |||||
Impairment of auction rate securities |
| 60,108 | ||||||
Equity in earnings of EBS Master LLC |
| (4,007 | ) | |||||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
6,010 | 6,275 | ||||||
Prepaid expenses and other, net |
(8,394 | ) | (10,450 | ) | ||||
Accrued expenses and other long-term liabilities |
(7,740 | ) | (3,518 | ) | ||||
Deferred revenue |
4,248 | 5,367 | ||||||
Net cash provided by continuing operations |
57,559 | 34,087 | ||||||
Net cash provided by discontinued operations |
9,273 | 44,738 | ||||||
Net cash provided by operating activities |
66,832 | 78,825 | ||||||
Cash flows from investing activities: |
||||||||
Proceeds from maturities and sales of available-for-sale securities |
2,200 | 117,539 | ||||||
Purchases of available-for-sale securities |
| (177,150 | ) | |||||
Purchases of property and equipment |
(14,248 | ) | (15,075 | ) | ||||
Proceeds related to the sales of EBS Master LLC |
| 574,617 | ||||||
Proceeds from the sale of discontinued operations |
2,840 | 247,089 | ||||||
Proceeds from advances to EBS Master LLC |
| 1,224 | ||||||
Other |
| 148 | ||||||
Net cash (used in) provided by continuing operations |
(9,208 | ) | 748,392 | |||||
Net cash used in discontinued operations |
(3,315 | ) | (4,305 | ) | ||||
Net cash (used in) provided by investing activities |
(12,523 | ) | 744,087 | |||||
Cash flows from financing activities: |
||||||||
Proceeds from issuance of HLTH and WHC common stock |
28,770 | 20,725 | ||||||
Repurchases of convertible notes |
(123,857 | ) | | |||||
Other |
63 | 343 | ||||||
Net cash (used in) provided by continuing operations |
(95,024 | ) | 21,068 | |||||
Net cash used in discontinued operations |
| (76 | ) | |||||
Net cash (used in) provided by financing activities |
(95,024 | ) | 20,992 | |||||
Effect of exchange rates on cash |
420 | (604 | ) | |||||
Net (decrease) increase in cash and cash equivalents |
(40,295 | ) | 843,300 | |||||
Cash and cash equivalents at beginning of period |
629,848 | 536,879 | ||||||
Cash and cash equivalents at end of period |
$ | 589,553 | $ | 1,380,179 | ||||
(a) | The consolidated financial statements for the nine months ended September 30, 2008 have been adjusted to reflect (i) the required adoption, effective January 1, 2009, of new authoritative guidance and (ii) the reclassification of WebMDs Little Blue Book print directory business to discontinued operations. |