Attached files
| file | filename |
|---|---|
| 8-K - 8-K - WebMD Health Corp. | d387726d8k.htm |
| EX-99.3 - EX-99.3 - WebMD Health Corp. | d387726dex993.htm |
| EX-99.4 - EX-99.4 - WebMD Health Corp. | d387726dex994.htm |
| EX-99.1 - EX-99.1 - WebMD Health Corp. | d387726dex991.htm |
Exhibit 99.2
WEBMD HEALTH CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data, unaudited)
| Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Revenue |
$ | 112,668 | $ | 141,369 | $ | 219,615 | $ | 272,978 | ||||||||
| Cost of operations |
54,243 | 51,152 | 107,714 | 99,601 | ||||||||||||
| Sales and marketing |
31,822 | 32,270 | 61,925 | 64,564 | ||||||||||||
| General and administrative |
21,746 | 22,006 | 50,768 | 44,827 | ||||||||||||
| Depreciation and amortization |
6,713 | 6,724 | 13,643 | 13,148 | ||||||||||||
| Interest income |
34 | 51 | 45 | 67 | ||||||||||||
| Interest expense |
5,832 | 5,833 | 11,668 | 8,974 | ||||||||||||
| Gain on investments |
— | 1,769 | 8,074 | 15,829 | ||||||||||||
| Other expense |
1,097 | — | 2,297 | 53 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (Loss) income from continuing operations before income tax (benefit) provision |
(8,751 | ) | 25,204 | (20,281 | ) | 57,707 | ||||||||||
| Income tax (benefit) provision |
(2,649 | ) | 11,003 | (6,402 | ) | 23,961 | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (Loss) income from continuing operations |
(6,102 | ) | 14,201 | (13,879 | ) | 33,746 | ||||||||||
| Income from discontinued operations, net of tax |
508 | 7,394 | 508 | 7,394 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net (loss) income |
$ | (5,594 | ) | $ | 21,595 | $ | (13,371 | ) | $ | 41,140 | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Basic (loss) income per common share: |
||||||||||||||||
| (Loss) income from continuing operations |
$ | (0.12 | ) | $ | 0.24 | $ | (0.26 | ) | $ | 0.58 | ||||||
| Income from discontinued operations |
0.01 | 0.13 | 0.01 | 0.12 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net (loss) income |
$ | (0.11 | ) | $ | 0.37 | $ | (0.25 | ) | $ | 0.70 | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted (loss) income per common share: |
||||||||||||||||
| (Loss) income from continuing operations |
$ | (0.12 | ) | $ | 0.23 | $ | (0.26 | ) | $ | 0.55 | ||||||
| Income from discontinued operations |
0.01 | 0.13 | 0.01 | 0.13 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net (loss) income |
$ | (0.11 | ) | $ | 0.36 | $ | (0.25 | ) | $ | 0.68 | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Weighted-average shares outstanding used in computing (loss) income per common share: |
||||||||||||||||
| Basic |
49,615 | 58,096 | 52,692 | 58,140 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
49,615 | 60,236 | 52,692 | 60,473 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
WEBMD HEALTH CORP.
CONSOLIDATED SUPPLEMENTAL FINANCIAL INFORMATION
(In thousands, unaudited)
| Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Revenue |
||||||||||||||||
| Public portal advertising and sponsorship |
$ | 93,744 | $ | 121,108 | $ | 181,520 | $ | 231,471 | ||||||||
| Private portal services |
18,924 | 20,261 | 38,095 | 41,507 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 112,668 | $ | 141,369 | $ | 219,615 | $ | 272,978 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Earnings before interest, taxes, non-cash and other items |
$ | 14,238 | $ | 45,289 | $ | 25,489 | $ | 83,147 | ||||||||
| Interest, taxes, non-cash and other items (b) |
||||||||||||||||
| Interest income |
34 | 51 | 45 | 67 | ||||||||||||
| Interest expense |
(5,832 | ) | (5,833 | ) | (11,668 | ) | (8,974 | ) | ||||||||
| Income tax benefit (provision) |
2,649 | (11,003 | ) | 6,402 | (23,961 | ) | ||||||||||
| Depreciation and amortization |
(6,713 | ) | (6,724 | ) | (13,643 | ) | (13,148 | ) | ||||||||
| Non-cash stock-based compensation |
(9,381 | ) | (9,348 | ) | (26,281 | ) | (19,161 | ) | ||||||||
| Gain on investments |
— | 1,769 | 8,074 | 15,829 | ||||||||||||
| Other expense |
(1,097 | ) | — | (2,297 | ) | (53 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (Loss) income from continuing operations |
(6,102 | ) | 14,201 | (13,879 | ) | 33,746 | ||||||||||
| Income from discontinued operations, net of tax |
508 | 7,394 | 508 | 7,394 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net (loss) income |
$ | (5,594 | ) | $ | 21,595 | $ | (13,371 | ) | $ | 41,140 | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (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)
| June 30, 2012 | December 31, 2011 | |||||||
| Assets |
||||||||
| Cash and cash equivalents |
$ | 964,226 | $ | 1,121,217 | ||||
| Accounts receivable, net |
96,834 | 121,335 | ||||||
| Prepaid expenses and other current assets |
16,933 | 12,690 | ||||||
| Deferred tax assets |
21,872 | 20,482 | ||||||
|
|
|
|
|
|||||
| Total current assets |
1,099,865 | 1,275,724 | ||||||
| Property and equipment, net |
65,193 | 57,139 | ||||||
| Goodwill |
202,104 | 202,104 | ||||||
| Intangible assets, net |
18,686 | 19,999 | ||||||
| Deferred tax assets |
52,816 | 55,017 | ||||||
| Other assets |
28,875 | 31,042 | ||||||
|
|
|
|
|
|||||
| Total Assets |
$ | 1,467,539 | $ | 1,641,025 | ||||
|
|
|
|
|
|||||
| Liabilities and Stockholders’ Equity |
||||||||
| Accrued expenses |
$ | 49,322 | $ | 55,238 | ||||
| Deferred revenue |
89,285 | 88,055 | ||||||
| Liabilities of discontinued operations |
1,506 | 1,506 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
140,113 | 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 |
22,942 | 21,790 | ||||||
| Stockholders’ equity |
504,484 | 674,436 | ||||||
|
|
|
|
|
|||||
| Total Liabilities and Stockholders’ Equity |
$ | 1,467,539 | $ | 1,641,025 | ||||
|
|
|
|
|
|||||
WEBMD HEALTH CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
| Six Months Ended June 30, | ||||||||
| 2012 | 2011 | |||||||
| Cash flows from operating activities: |
||||||||
| Net (loss) income |
$ | (13,371 | ) | $ | 41,140 | |||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
||||||||
| Income from discontinued operations, net of tax |
(508 | ) | (7,394 | ) | ||||
| Depreciation and amortization |
13,643 | 13,148 | ||||||
| Non-cash interest, net |
2,163 | 1,599 | ||||||
| Non-cash stock-based compensation |
26,281 | 19,161 | ||||||
| Deferred income taxes |
(6,870 | ) | 4,423 | |||||
| Gain on investments |
(8,074 | ) | (15,829 | ) | ||||
| Changes in operating assets and liabilities: |
||||||||
| Accounts receivable |
24,501 | 19,234 | ||||||
| Prepaid expenses and other, net |
(4,469 | ) | (2,103 | ) | ||||
| Accrued expenses and other long-term liabilities |
(9,128 | ) | 4,765 | |||||
| Deferred revenue |
1,230 | (1,044 | ) | |||||
|
|
|
|
|
|||||
| Net cash provided by continuing operations |
25,398 | 77,100 | ||||||
| Net cash used in discontinued operations |
— | (136 | ) | |||||
|
|
|
|
|
|||||
| Net cash provided by operating activities |
25,398 | 76,964 | ||||||
| Cash flows from investing activities: |
||||||||
| Proceeds received from ARS option |
9,269 | 16,561 | ||||||
| Purchases of property and equipment |
(16,606 | ) | (9,557 | ) | ||||
|
|
|
|
|
|||||
| Net cash (used in) provided by investing activities |
(7,337 | ) | 7,004 | |||||
| Cash flows from financing activities: |
||||||||
| Proceeds from exercise of stock options |
816 | 25,053 | ||||||
| Cash used for withholding taxes due on stock-based awards |
(1,958 | ) | (6,632 | ) | ||||
| Net proceeds from issuance of the 2.50% Notes and 2.25% Notes |
— | 774,745 | ||||||
| Purchases of treasury stock |
(173,910 | ) | (150,417 | ) | ||||
| Excess tax benefit on stock-based awards |
— | 17,843 | ||||||
|
|
|
|
|
|||||
| Net cash (used in) provided by financing activities |
(175,052 | ) | 660,592 | |||||
|
|
|
|
|
|||||
| Net (decrease) increase in cash and cash equivalents |
(156,991 | ) | 744,560 | |||||
| Cash and cash equivalents at beginning of period |
1,121,217 | 400,501 | ||||||
|
|
|
|
|
|||||
| Cash and cash equivalents at end of period |
$ | 964,226 | $ | 1,145,061 | ||||
|
|
|
|
|
|||||