Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - WebMD Health Corp. | d490039d8k.htm |
| EX-99.4 - EX-99.4 - WebMD Health Corp. | d490039dex994.htm |
| EX-99.3 - EX-99.3 - WebMD Health Corp. | d490039dex993.htm |
| EX-99.1 - EX-99.1 - WebMD Health Corp. | d490039dex991.htm |
Exhibit 99.2
WEBMD HEALTH CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data, unaudited)
| Three Months Ended | Years Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Revenue |
$ | 132,738 | $ | 150,659 | $ | 469,866 | $ | 558,775 | ||||||||
| Cost of operations |
55,352 | 52,979 | 216,361 | 201,677 | ||||||||||||
| Sales and marketing |
32,598 | 30,165 | 127,659 | 124,326 | ||||||||||||
| General and administrative |
23,767 | 23,657 | 97,618 | 91,271 | ||||||||||||
| Depreciation and amortization |
8,248 | 6,872 | 28,399 | 26,801 | ||||||||||||
| Interest income |
22 | 24 | 86 | 112 | ||||||||||||
| Interest expense |
5,834 | 5,809 | 23,334 | 20,645 | ||||||||||||
| Gain on investments |
— | 3,837 | 8,074 | 18,516 | ||||||||||||
| Restructuring |
7,579 | — | 7,579 | — | ||||||||||||
| Other expense |
— | 2,275 | 2,297 | 2,328 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (Loss) income from continuing operations before income tax provision (benefit) |
(618 | ) | 32,763 | (25,221 | ) | 110,355 | ||||||||||
| Income tax provision (benefit) |
5,470 | 13,561 | (2,134 | ) | 46,167 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (Loss) income from continuing operations |
(6,088 | ) | 19,202 | (23,087 | ) | 64,188 | ||||||||||
| Income from discontinued operations, net of tax |
— | — | 2,743 | 10,388 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net (loss) income |
$ | (6,088 | ) | $ | 19,202 | $ | (20,344 | ) | $ | 74,576 | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Basic (loss) income per common share: |
||||||||||||||||
| (Loss) income from continuing operations |
$ | (0.12 | ) | $ | 0.34 | $ | (0.45 | ) | $ | 1.11 | ||||||
| Income from discontinued operations |
— | — | 0.05 | 0.18 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net (loss) income |
$ | (0.12 | ) | $ | 0.34 | $ | (0.40 | ) | $ | 1.29 | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted (loss) income per common share: |
||||||||||||||||
| (Loss) income from continuing operations |
$ | (0.12 | ) | $ | 0.33 | $ | (0.45 | ) | $ | 1.08 | ||||||
| Income from discontinued operations |
— | — | 0.05 | 0.17 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net (loss) income |
$ | (0.12 | ) | $ | 0.33 | $ | (0.40 | ) | $ | 1.25 | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Weighted-average shares outstanding used in computing (loss) income per common share: |
||||||||||||||||
| Basic |
49,041 | 55,685 | 50,862 | 57,356 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
49,041 | 68,326 | 50,862 | 59,124 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
WEBMD HEALTH CORP.
CONSOLIDATED SUPPLEMENTAL FINANCIAL INFORMATION
(In thousands, unaudited)
| Three Months Ended | Years Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Revenue |
||||||||||||||||
| Public portal advertising and sponsorship |
$ | 112,257 | $ | 130,821 | $ | 391,339 | $ | 477,325 | ||||||||
| Private portal services |
20,481 | 19,838 | 78,527 | 81,450 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 132,738 | $ | 150,659 | $ | 469,866 | $ | 558,775 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Earnings before interest, taxes, non-cash and other items (“Adjusted EBITDA”) (a) |
$ | 30,049 | $ | 54,626 | $ | 73,149 | $ | 181,238 | ||||||||
| Interest, taxes, non-cash and other items (b) |
||||||||||||||||
| Interest income |
22 | 24 | 86 | 112 | ||||||||||||
| Interest expense |
(5,834 | ) | (5,809 | ) | (23,334 | ) | (20,645 | ) | ||||||||
| Income tax (provision) benefit |
(5,470 | ) | (13,561 | ) | 2,134 | (46,167 | ) | |||||||||
| Depreciation and amortization |
(8,248 | ) | (6,872 | ) | (28,399 | ) | (26,801 | ) | ||||||||
| Non-cash stock-based compensation |
(9,028 | ) | (10,768 | ) | (44,921 | ) | (39,737 | ) | ||||||||
| Gain on investments |
— | 3,837 | 8,074 | 18,516 | ||||||||||||
| Restructuring |
(7,579 | ) | — | (7,579 | ) | — | ||||||||||
| Other expense |
— | (2,275 | ) | (2,297 | ) | (2,328 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (Loss) income from continuing operations |
(6,088 | ) | 19,202 | (23,087 | ) | 64,188 | ||||||||||
| Income from discontinued operations, net of tax |
— | — | 2,743 | 10,388 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net (loss) income |
$ | (6,088 | ) | $ | 19,202 | $ | (20,344 | ) | $ | 74,576 | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (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)
| December 31, | ||||||||
| 2012 | 2011 | |||||||
| Assets |
||||||||
| Cash and cash equivalents |
$ | 991,835 | $ | 1,121,217 | ||||
| Accounts receivable, net |
106,622 | 121,335 | ||||||
| Prepaid expenses and other current assets |
13,882 | 12,690 | ||||||
| Deferred tax assets |
10,328 | 20,482 | ||||||
|
|
|
|
|
|||||
| Total current assets |
1,122,667 | 1,275,724 | ||||||
| Property and equipment, net |
66,604 | 57,139 | ||||||
| Goodwill |
202,104 | 202,104 | ||||||
| Intangible assets, net |
16,105 | 19,999 | ||||||
| Deferred tax assets |
56,039 | 55,017 | ||||||
| Other assets |
27,106 | 31,042 | ||||||
|
|
|
|
|
|||||
| Total Assets |
$ | 1,490,625 | $ | 1,641,025 | ||||
|
|
|
|
|
|||||
| Liabilities and Stockholders’ Equity |
||||||||
| Accrued expenses |
$ | 64,256 | $ | 55,238 | ||||
| Deferred revenue |
92,176 | 88,055 | ||||||
| Liabilities of discontinued operations |
1,506 | 1,506 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
157,938 | 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 |
22,698 | 21,790 | ||||||
| Stockholders’ equity |
509,989 | 674,436 | ||||||
|
|
|
|
|
|||||
| Total Liabilities and Stockholders’ Equity |
$ | 1,490,625 | $ | 1,641,025 | ||||
|
|
|
|
|
|||||
WEBMD HEALTH CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
| Years Ended | ||||||||
| December 31, | ||||||||
| 2012 | 2011 | |||||||
| Cash flows from operating activities: |
||||||||
| Net (loss) income |
$ | (20,344 | ) | $ | 74,576 | |||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
||||||||
| Income from discontinued operations, net of tax |
(2,743 | ) | (10,388 | ) | ||||
| Depreciation and amortization |
28,399 | 26,801 | ||||||
| Non-cash interest, net |
4,326 | 3,758 | ||||||
| Non-cash stock-based compensation |
44,921 | 39,737 | ||||||
| Deferred income taxes |
(2,337 | ) | 13,696 | |||||
| Gain on investments |
(8,074 | ) | (18,516 | ) | ||||
| Changes in operating assets and liabilities: |
||||||||
| Accounts receivable |
14,713 | 13,113 | ||||||
| Prepaid expenses and other, net |
(1,589 | ) | 1,416 | |||||
| Accrued expenses and other long-term liabilities |
9,429 | 2,511 | ||||||
| Deferred revenue |
4,121 | (8,988 | ) | |||||
|
|
|
|
|
|||||
| Net cash provided by continuing operations |
70,822 | 137,716 | ||||||
| Net cash provided by (used in) discontinued operations |
4,324 | (440 | ) | |||||
|
|
|
|
|
|||||
| Net cash provided by operating activities |
75,146 | 137,276 | ||||||
| Cash flows from investing activities: |
||||||||
| Proceeds received from ARS option |
9,269 | 21,566 | ||||||
| Purchases of property and equipment |
(35,171 | ) | (20,911 | ) | ||||
|
|
|
|
|
|||||
| Net cash (used in) provided by investing activities |
(25,902 | ) | 655 | |||||
| Cash flows from financing activities: |
||||||||
| Proceeds from exercise of stock options |
827 | 28,339 | ||||||
| Cash used for withholding taxes due on stock-based awards |
(2,740 | ) | (9,234 | ) | ||||
| Net proceeds from issuance of the 2.50% Notes and 2.25% Notes |
— | 774,745 | ||||||
| Purchases of treasury stock |
(177,090 | ) | (241,263 | ) | ||||
| Excess tax benefit on stock-based awards |
377 | 30,198 | ||||||
|
|
|
|
|
|||||
| Net cash (used in) provided by financing activities |
(178,626 | ) | 582,785 | |||||
|
|
|
|
|
|||||
| Net (decrease) increase in cash and cash equivalents |
(129,382 | ) | 720,716 | |||||
| Cash and cash equivalents at beginning of period |
1,121,217 | 400,501 | ||||||
|
|
|
|
|
|||||
| Cash and cash equivalents at end of period |
$ | 991,835 | $ | 1,121,217 | ||||
|
|
|
|
|
|||||