Attached files
file | filename |
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8-K - FORM 8-K - WebMD Health Corp. | g26232e8vk.htm |
EX-99.3 - EX-99.3 - WebMD Health Corp. | g26232exv99w3.htm |
EX-99.1 - EX-99.1 - WebMD Health Corp. | g26232exv99w1.htm |
EX-99.4 - EX-99.4 - WebMD Health Corp. | g26232exv99w4.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 | Years Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Revenue |
$ | 168,477 | $ | 138,073 | $ | 534,519 | $ | 438,536 | ||||||||
Cost of operations |
51,859 | 47,994 | 187,831 | 165,753 | ||||||||||||
Sales and marketing |
34,085 | 31,478 | 120,874 | 112,101 | ||||||||||||
General and administrative |
23,146 | 23,802 | 85,496 | 89,620 | ||||||||||||
Depreciation and amortization |
7,310 | 6,992 | 27,578 | 28,185 | ||||||||||||
Interest income |
99 | 3,089 | 3,949 | 9,149 | ||||||||||||
Interest expense |
1,347 | 5,657 | 11,453 | 23,515 | ||||||||||||
(Loss) gain on convertible notes |
(6,362 | ) | | (23,332 | ) | 10,120 | ||||||||||
Gain (loss) on investments |
13,460 | | (9,517 | ) | | |||||||||||
Severance and other transaction expenses |
| 11,066 | | 11,066 | ||||||||||||
Other income (expense), net |
20 | (425 | ) | (72 | ) | (1,369 | ) | |||||||||
Income from continuing operations before income
tax provision (benefit) |
57,947 | 13,748 | 72,315 | 26,196 | ||||||||||||
Income tax provision (benefit) |
24,183 | (50,413 | ) | 20,043 | (45,491 | ) | ||||||||||
Consolidated income from continuing operations |
33,764 | 64,161 | 52,272 | 71,687 | ||||||||||||
Consolidated income from discontinued operations, net of tax |
2,824 | 34,659 | 1,800 | 49,354 | ||||||||||||
Consolidated net income inclusive of noncontrolling interest |
36,588 | 98,820 | 54,072 | 121,041 | ||||||||||||
Income attributable to noncontrolling interest |
| (524 | ) | | (3,705 | ) | ||||||||||
Net income attributable to Company stockholders |
$ | 36,588 | $ | 98,296 | $ | 54,072 | $ | 117,336 | ||||||||
Amounts attributable to Company stockholders: |
||||||||||||||||
Income from continuing operations |
$ | 33,764 | $ | 63,637 | $ | 52,272 | $ | 67,018 | ||||||||
Income from discontinued operations |
2,824 | 34,659 | 1,800 | 50,318 | ||||||||||||
Net income attributable to Company stockholders |
$ | 36,588 | $ | 98,296 | $ | 54,072 | $ | 117,336 | ||||||||
Basic income per common share: |
||||||||||||||||
Income from continuing operations |
$ | 0.58 | $ | 1.19 | $ | 0.93 | $ | 1.40 | ||||||||
Income from discontinued operations |
0.05 | 0.65 | 0.04 | 1.05 | ||||||||||||
Net income attributable to Company stockholders |
$ | 0.63 | $ | 1.84 | $ | 0.97 | $ | 2.45 | ||||||||
Diluted income per common share: |
||||||||||||||||
Income from continuing operations |
$ | 0.55 | $ | 0.92 | $ | 0.85 | $ | 1.21 | ||||||||
Income from discontinued operations |
0.04 | 0.47 | 0.03 | 0.86 | ||||||||||||
Net income attributable to Company stockholders |
$ | 0.59 | $ | 1.39 | $ | 0.88 | $ | 2.07 | ||||||||
Weighted-average shares outstanding used in
computing income per common share: |
||||||||||||||||
Basic |
57,505 | 52,688 | 55,328 | 47,400 | ||||||||||||
Diluted |
62,330 | 71,945 | 62,228 | 57,740 | ||||||||||||
WEBMD HEALTH CORP.
CONSOLIDATED SUPPLEMENTAL FINANCIAL INFORMATION
(In thousands, unaudited)
CONSOLIDATED SUPPLEMENTAL FINANCIAL INFORMATION
(In thousands, unaudited)
Three Months Ended | Years Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Revenue |
||||||||||||||||
Public portal advertising and sponsorship |
$ | 147,042 | $ | 114,875 | $ | 446,969 | $ | 347,570 | ||||||||
Private portal services |
21,435 | 23,198 | 87,550 | 90,966 | ||||||||||||
$ | 168,477 | $ | 138,073 | $ | 534,519 | $ | 438,536 | |||||||||
Earnings before interest, taxes, non-cash
and other items (Adjusted EBITDA) (a) |
$ | 69,082 | $ | 46,428 | $ | 173,618 | $ | 112,274 | ||||||||
Interest, taxes, non-cash and other items (b) |
||||||||||||||||
Interest income |
99 | 3,089 | 3,949 | 9,149 | ||||||||||||
Interest expense |
(1,347 | ) | (5,657 | ) | (11,453 | ) | (23,515 | ) | ||||||||
Income tax (provision) benefit |
(24,183 | ) | 50,413 | (20,043 | ) | 45,491 | ||||||||||
Depreciation and amortization |
(7,310 | ) | (6,992 | ) | (27,578 | ) | (28,185 | ) | ||||||||
Non-cash stock-based compensation |
(9,695 | ) | (11,629 | ) | (33,300 | ) | (39,412 | ) | ||||||||
Non-cash advertising |
| | | (1,753 | ) | |||||||||||
(Loss) gain on convertible notes |
(6,362 | ) | | (23,332 | ) | 10,120 | ||||||||||
Gain (loss) on investments |
13,460 | | (9,517 | ) | | |||||||||||
Severance and other transaction expenses |
| (11,066 | ) | | (11,066 | ) | ||||||||||
Other income (expense), net |
20 | (425 | ) | (72 | ) | (1,416 | ) | |||||||||
Consolidated income from continuing operations |
33,764 | 64,161 | 52,272 | 71,687 | ||||||||||||
Consolidated income from discontinued operations, net of tax |
2,824 | 34,659 | 1,800 | 49,354 | ||||||||||||
Consolidated net income inclusive of noncontrolling interest |
36,588 | 98,820 | 54,072 | 121,041 | ||||||||||||
Income attributable to noncontrolling interest |
| (524 | ) | | (3,705 | ) | ||||||||||
Net income attributable to Company stockholders |
$ | 36,588 | $ | 98,296 | $ | 54,072 | $ | 117,336 | ||||||||
(a) | See Annex A-Explanation of Non-GAAP Financial Measures. | |
(b) | Reconciliation of Adjusted EBITDA to consolidated income from continuing operations. |
WEBMD HEALTH CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
December 31, 2010 | December 31, 2009 | |||||||
Assets |
||||||||
Cash and cash equivalents |
$ | 400,501 | $ | 459,766 | ||||
Accounts receivable, net |
134,448 | 118,155 | ||||||
Prepaid expenses and other current assets |
12,161 | 11,419 | ||||||
Investments |
| 9,932 | ||||||
Deferred tax assets |
23,467 | | ||||||
Total current assets |
570,577 | 599,272 | ||||||
Investments |
| 338,446 | ||||||
Property and equipment, net |
61,516 | 52,194 | ||||||
Goodwill |
202,104 | 202,104 | ||||||
Intangible assets, net |
22,626 | 26,020 | ||||||
Deferred tax assets |
71,125 | 50,789 | ||||||
Other assets |
14,254 | 19,723 | ||||||
Total Assets |
$ | 942,202 | $ | 1,288,548 | ||||
Liabilities and Equity |
||||||||
Accrued expenses |
$ | 53,181 | $ | 63,721 | ||||
Deferred revenue |
97,043 | 98,474 | ||||||
1.75% convertible notes |
| 264,583 | ||||||
Deferred tax liabilities |
| 12,955 | ||||||
Liabilities of discontinued operations |
17,327 | 34,197 | ||||||
Total current liabilities |
167,551 | 473,930 | ||||||
31/8% convertible notes, net of
discount of $22,641 at December 31, 2009 |
| 227,659 | ||||||
Other long-term liabilities |
21,756 | 22,191 | ||||||
Stockholders equity |
752,895 | 564,768 | ||||||
Total Liabilities and Equity |
$ | 942,202 | $ | 1,288,548 | ||||
WEBMD HEALTH CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
Years Ended | ||||||||
December 31, | ||||||||
2010 | 2009 | |||||||
Cash flows from operating activities: |
||||||||
Consolidated net income inclusive of noncontrolling interest |
$ | 54,072 | $ | 121,041 | ||||
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 |
(1,800 | ) | (49,354 | ) | ||||
Depreciation and amortization |
27,578 | 28,185 | ||||||
Non-cash interest, net |
5,594 | 10,205 | ||||||
Non-cash advertising |
| 1,753 | ||||||
Non-cash stock-based compensation |
33,300 | 39,412 | ||||||
Deferred income taxes |
(403 | ) | (42,143 | ) | ||||
Loss (gain) on convertible notes |
23,332 | (10,120 | ) | |||||
Loss on investments |
9,517 | | ||||||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
(16,292 | ) | (25,073 | ) | ||||
Prepaid expenses and other, net |
4,617 | 6,979 | ||||||
Accrued expenses and other long-term liabilities |
213 | 7,677 | ||||||
Deferred revenue |
(1,431 | ) | 18,861 | |||||
Net cash provided by continuing operations |
138,297 | 107,423 | ||||||
Net cash (used in) provided by discontinued operations |
(16,474 | ) | 305 | |||||
Net cash provided by operating activities |
121,823 | 107,728 | ||||||
Cash flows from investing activities: |
||||||||
Proceeds from sales of available-for-sale securities |
361,852 | 2,300 | ||||||
Proceeds
received from ARS Option |
10,467 | | ||||||
Purchases of property and equipment |
(32,254 | ) | (17,886 | ) | ||||
Proceeds
received (payments made) from the sale of discontinued operations |
(1,430 | ) | 72,318 | |||||
Net cash provided by continuing operations |
338,635 | 56,732 | ||||||
Net cash used in discontinued operations |
| (3,552 | ) | |||||
Net cash provided by investing activities |
338,635 | 53,180 | ||||||
Cash flows from financing activities: |
||||||||
Proceeds from exercise of stock options |
59,825 | 42,898 | ||||||
Cash used for withholding taxes due on stock-based awards |
(86,533 | ) | (17,645 | ) | ||||
Repurchases of convertible notes |
(94,525 | ) | (123,857 | ) | ||||
Purchase of
treasury stock under repurchase program and tender offers |
(420,948 | ) | (228,402 | ) | ||||
Cash paid for merger related costs |
| (5,021 | ) | |||||
Excess tax benefit on stock-based awards |
22,458 | 480 | ||||||
Net cash used in financing activities |
(519,723 | ) | (331,547 | ) | ||||
Effect of exchange rates on cash |
| 557 | ||||||
Net decrease in cash and cash equivalents |
(59,265 | ) | (170,082 | ) | ||||
Cash and cash equivalents at beginning of period |
459,766 | 629,848 | ||||||
Cash and cash equivalents at end of period |
$ | 400,501 | $ | 459,766 | ||||
WEBMD HEALTH CORP.
CONSOLIDATED NET INCOME ATTRIBUTABLE TO COMPANY STOCKHOLDERS
(In thousands, except per share data, unaudited)
CONSOLIDATED NET INCOME ATTRIBUTABLE TO COMPANY STOCKHOLDERS
(In thousands, except per share data, unaudited)
Three Months Ended | Years Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Numerator: |
||||||||||||||||
Income from continuing operations |
$ | 33,764 | $ | 63,637 | $ | 52,272 | $ | 67,018 | ||||||||
Effect of participating non-vested restricted stock |
(339 | ) | (886 | ) | (601 | ) | (787 | ) | ||||||||
Income from continuing operations Basic |
33,425 | 62,751 | 51,671 | 66,231 | ||||||||||||
Interest expense on 1.75% Convertible Notes, net of tax |
| 876 | 1,469 | 3,714 | ||||||||||||
Interest expense on 3 1/8% Convertible Notes, net of tax |
809 | 2,472 | | | ||||||||||||
Effect of dilutive securities of subsidiary |
| (57 | ) | | (343 | ) | ||||||||||
Income from continuing operations Diluted |
$ | 34,234 | $ | 66,042 | $ | 53,140 | $ | 69,602 | ||||||||
Income from discontinued operations net of tax |
$ | 2,824 | $ | 34,659 | $ | 1,800 | $ | 50,318 | ||||||||
Effect of participating non-vested restricted stock |
(28 | ) | (483 | ) | (21 | ) | (591 | ) | ||||||||
Income from discontinued operations Basic |
2,796 | 34,176 | 1,779 | 49,727 | ||||||||||||
Effect of dilutive securities of subsidiary |
| | | 53 | ||||||||||||
Income from discontinued operations Diluted |
$ | 2,796 | $ | 34,176 | $ | 1,779 | $ | 49,780 | ||||||||
Denominator: |
||||||||||||||||
Weighted-average shares Basic |
57,505 | 52,688 | 55,328 | 47,400 | ||||||||||||
Employee
stock options and restricted stock |
2,651 | 4,470 | 3,706 | 2,265 | ||||||||||||
1.75% Convertible Notes |
| 7,640 | 3,194 | 8,075 | ||||||||||||
3 1/8% Convertible Notes |
2,174 | 7,147 | | | ||||||||||||
Adjusted weighted-average shares after assumed conversions Diluted |
62,330 | 71,945 | 62,228 | 57,740 | ||||||||||||
Basic income per common share: |
||||||||||||||||
Income from continuing operations |
$ | 0.58 | $ | 1.19 | $ | 0.93 | $ | 1.40 | ||||||||
Income from discontinued operations |
0.05 | 0.65 | 0.04 | 1.05 | ||||||||||||
Net income attributable to Company stockholders |
$ | 0.63 | $ | 1.84 | $ | 0.97 | $ | 2.45 | ||||||||
Diluted income per common share: |
||||||||||||||||
Income from continuing operations |
$ | 0.55 | $ | 0.92 | $ | 0.85 | $ | 1.21 | ||||||||
Income from discontinued operations |
0.04 | 0.47 | 0.03 | 0.86 | ||||||||||||
Net income attributable to Company stockholders |
$ | 0.59 | $ | 1.39 | $ | 0.88 | $ | 2.07 | ||||||||