Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - WebMD Health Corp. | d617978d8k.htm |
| EX-99.1 - EX-99.1 - WebMD Health Corp. | d617978dex991.htm |
| EX-99.3 - EX-99.3 - WebMD Health Corp. | d617978dex993.htm |
| EX-99.4 - EX-99.4 - WebMD Health Corp. | d617978dex994.htm |
Exhibit 99.2
WEBMD HEALTH CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data, unaudited)
| Three Months Ended September 30, |
Nine Months Ended September 30, |
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| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Revenue |
$ | 130,937 | $ | 117,513 | $ | 369,016 | $ | 337,128 | ||||||||
| Cost of operations |
53,438 | 53,295 | 151,977 | 161,009 | ||||||||||||
| Sales and marketing |
32,561 | 33,136 | 94,916 | 95,061 | ||||||||||||
| General and administrative |
22,689 | 23,083 | 70,505 | 73,851 | ||||||||||||
| Depreciation and amortization |
6,552 | 6,508 | 20,040 | 20,151 | ||||||||||||
| Interest income |
16 | 19 | 54 | 64 | ||||||||||||
| Interest expense |
5,833 | 5,832 | 17,497 | 17,500 | ||||||||||||
| Gain on investments |
— | — | — | 8,074 | ||||||||||||
| Loss on convertible notes |
3,296 | — | 3,296 | — | ||||||||||||
| Other expense |
— | — | 1,353 | 2,297 | ||||||||||||
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| Income (loss) from continuing operations before income tax provision (benefit) |
6,584 | (4,322 | ) | 9,486 | (24,603 | ) | ||||||||||
| Income tax provision (benefit) |
3,353 | (1,202 | ) | 5,182 | (7,604 | ) | ||||||||||
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| Income (loss) from continuing operations |
3,231 | (3,120 | ) | 4,304 | (16,999 | ) | ||||||||||
| Income from discontinued operations, net of tax |
— | 2,235 | — | 2,743 | ||||||||||||
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| Net income (loss) |
$ | 3,231 | $ | (885 | ) | $ | 4,304 | $ | (14,256 | ) | ||||||
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| Basic income (loss) per common share: |
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| Income (loss) from continuing operations |
$ | 0.07 | $ | (0.06 | ) | $ | 0.09 | $ | (0.33 | ) | ||||||
| Income from discontinued operations |
— | 0.04 | — | 0.05 | ||||||||||||
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| Net income (loss) |
$ | 0.07 | $ | (0.02 | ) | $ | 0.09 | $ | (0.28 | ) | ||||||
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| Diluted income (loss) per common share: |
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| Income (loss) from continuing operations |
$ | 0.06 | $ | (0.06 | ) | $ | 0.09 | $ | (0.33 | ) | ||||||
| Income from discontinued operations |
— | 0.04 | — | 0.05 | ||||||||||||
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| Net income (loss) |
$ | 0.06 | $ | (0.02 | ) | $ | 0.09 | $ | (0.28 | ) | ||||||
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| Weighted-average shares outstanding used in computing income (loss) per common share: |
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| Basic |
48,540 | 49,021 | 48,954 | 51,468 | ||||||||||||
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| Diluted |
50,594 | 49,021 | 50,315 | 51,468 | ||||||||||||
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WEBMD HEALTH CORP.
CONSOLIDATED SUPPLEMENTAL FINANCIAL INFORMATION
(In thousands, unaudited)
| Three Months Ended September 30, |
Nine Months Ended September 30, |
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| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Revenue |
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| Public portal advertising and sponsorship |
$ | 109,608 | $ | 97,562 | $ | 308,829 | $ | 279,082 | ||||||||
| Private portal services |
21,329 | 19,951 | 60,187 | 58,046 | ||||||||||||
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| $ | 130,937 | $ | 117,513 | $ | 369,016 | $ | 337,128 | |||||||||
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| Earnings before interest, taxes, non-cash and other items |
$ | 31,720 | $ | 17,611 | $ | 82,250 | $ | 43,100 | ||||||||
| Interest, taxes, non-cash and other items (b) |
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| Interest income |
16 | 19 | 54 | 64 | ||||||||||||
| Interest expense |
(5,833 | ) | (5,832 | ) | (17,497 | ) | (17,500 | ) | ||||||||
| Income tax (provision) benefit |
(3,353 | ) | 1,202 | (5,182 | ) | 7,604 | ||||||||||
| Depreciation and amortization |
(6,552 | ) | (6,508 | ) | (20,040 | ) | (20,151 | ) | ||||||||
| Non-cash stock-based compensation |
(9,471 | ) | (9,612 | ) | (30,632 | ) | (35,893 | ) | ||||||||
| Gain on investments |
— | — | — | 8,074 | ||||||||||||
| Loss on convertible notes |
(3,296 | ) | — | (3,296 | ) | — | ||||||||||
| Other expense |
— | — | (1,353 | ) | (2,297 | ) | ||||||||||
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| Income (loss) from continuing operations |
3,231 | (3,120 | ) | 4,304 | (16,999 | ) | ||||||||||
| Income from discontinued operations, net of tax |
— | 2,235 | — | 2,743 | ||||||||||||
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| Net income (loss) |
$ | 3,231 | $ | (885 | ) | $ | 4,304 | $ | (14,256 | ) | ||||||
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| (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)
| September 30, 2013 | December 31, 2012 | |||||||
| (unaudited) | ||||||||
| Assets |
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| Cash and cash equivalents |
$ | 776,098 | $ | 991,835 | ||||
| Accounts receivable, net |
99,705 | 106,622 | ||||||
| Prepaid expenses and other current assets |
13,836 | 13,882 | ||||||
| Deferred tax assets |
9,821 | 10,328 | ||||||
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| Total current assets |
899,460 | 1,122,667 | ||||||
| Property and equipment, net |
56,786 | 66,604 | ||||||
| Goodwill |
202,104 | 202,104 | ||||||
| Intangible assets, net |
14,402 | 16,105 | ||||||
| Deferred tax assets |
51,247 | 56,039 | ||||||
| Other assets |
22,007 | 27,106 | ||||||
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| Total Assets |
$ | 1,246,006 | $ | 1,490,625 | ||||
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| Liabilities and Stockholders' Equity |
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| Accrued expenses |
$ | 58,620 | $ | 64,256 | ||||
| Deferred revenue |
86,850 | 92,176 | ||||||
| Liabilities of discontinued operations |
1,506 | 1,506 | ||||||
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| Total current liabilities |
146,976 | 157,938 | ||||||
| 2.25% convertible notes due 2016 |
300,000 | 400,000 | ||||||
| 2.50% convertible notes due 2018 |
400,000 | 400,000 | ||||||
| Other long-term liabilities |
22,224 | 22,698 | ||||||
| Stockholders' equity |
376,806 | 509,989 | ||||||
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| Total Liabilities and Stockholders' Equity |
$ | 1,246,006 | $ | 1,490,625 | ||||
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WEBMD HEALTH CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
| Nine Months Ended September 30, |
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| 2013 | 2012 | |||||||
| Cash flows from operating activities: |
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| Net income (loss) |
$ | 4,304 | $ | (14,256 | ) | |||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
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| Income from discontinued operations, net of tax |
— | (2,743 | ) | |||||
| Depreciation and amortization |
20,040 | 20,151 | ||||||
| Non-cash interest, net |
3,245 | 3,244 | ||||||
| Non-cash stock-based compensation |
30,632 | 35,893 | ||||||
| Deferred income taxes |
4,592 | (7,702 | ) | |||||
| Loss on convertible notes |
3,296 | — | ||||||
| Gain on investments |
— | (8,074 | ) | |||||
| Changes in operating assets and liabilities: |
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| Accounts receivable |
6,917 | 26,325 | ||||||
| Prepaid expenses and other, net |
(100 | ) | (2,529 | ) | ||||
| Accrued expenses and other long-term liabilities |
(5,689 | ) | (1,760 | ) | ||||
| Deferred revenue |
(5,326 | ) | (4,517 | ) | ||||
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| Net cash provided by continuing operations |
61,911 | 44,032 | ||||||
| Net cash provided by discontinued operations |
— | 759 | ||||||
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| Net cash provided by operating activities |
61,911 | 44,791 | ||||||
| Cash flows from investing activities: |
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| Proceeds received from ARS option |
— | 9,269 | ||||||
| Purchases of property and equipment |
(9,901 | ) | (29,039 | ) | ||||
| Proceeds from sale of property and equipment |
1,381 | — | ||||||
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| Net cash used in investing activities |
(8,520 | ) | (19,770 | ) | ||||
| Cash flows from financing activities: |
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| Proceeds from exercise of stock options |
19,482 | 827 | ||||||
| Cash used for withholding taxes due on stock-based awards |
(7,321 | ) | (2,332 | ) | ||||
| Repurchase of convertible notes |
(101,750 | ) | — | |||||
| Repurchases of shares through tender offers |
(170,516 | ) | (150,759 | ) | ||||
| Purchases of treasury stock |
(9,023 | ) | (24,879 | ) | ||||
| Excess tax benefit on stock-based awards |
— | 301 | ||||||
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| Net cash used in financing activities |
(269,128 | ) | (176,842 | ) | ||||
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| Net decrease in cash and cash equivalents |
(215,737 | ) | (151,821 | ) | ||||
| Cash and cash equivalents at beginning of period |
991,835 | 1,121,217 | ||||||
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| Cash and cash equivalents at end of period |
$ | 776,098 | $ | 969,396 | ||||
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