Attached files
| file | filename |
|---|---|
| 8-K - 8-K - WebMD Health Corp. | d678750d8k.htm |
| EX-99.1 - EX-99.1 - WebMD Health Corp. | d678750dex991.htm |
| EX-99.3 - EX-99.3 - WebMD Health Corp. | d678750dex993.htm |
| EX-99.4 - EX-99.4 - WebMD Health Corp. | d678750dex994.htm |
Exhibit 99.2
WEBMD HEALTH CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data, unaudited)
| Three Months Ended December 31, |
Years Ended December 31, |
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| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Revenue |
$ | 146,277 | $ | 132,738 | $ | 515,293 | $ | 469,866 | ||||||||
| Cost of operations |
57,763 | 55,352 | 209,740 | 216,361 | ||||||||||||
| Sales and marketing |
33,081 | 32,598 | 127,997 | 127,659 | ||||||||||||
| General and administrative |
22,715 | 23,767 | 93,220 | 97,618 | ||||||||||||
| Depreciation and amortization |
6,566 | 8,248 | 26,606 | 28,399 | ||||||||||||
| Interest income |
22 | 22 | 76 | 86 | ||||||||||||
| Interest expense |
5,329 | 5,834 | 22,826 | 23,334 | ||||||||||||
| Loss on convertible notes |
1,575 | — | 4,871 | — | ||||||||||||
| Gain on investments |
— | — | — | 8,074 | ||||||||||||
| Restructuring |
— | 7,579 | — | 7,579 | ||||||||||||
| Other expense |
— | — | 1,353 | 2,297 | ||||||||||||
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| Income (loss) from continuing operations before income tax provision (benefit) |
19,270 | (618 | ) | 28,756 | (25,221 | ) | ||||||||||
| Income tax provision (benefit) |
8,458 | 5,470 | 13,640 | (2,134 | ) | |||||||||||
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| Income (loss) from continuing operations |
10,812 | (6,088 | ) | 15,116 | (23,087 | ) | ||||||||||
| Income from discontinued operations, net of tax |
— | — | — | 2,743 | ||||||||||||
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| Net income (loss) |
$ | 10,812 | $ | (6,088 | ) | $ | 15,116 | $ | (20,344 | ) | ||||||
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| Basic income (loss) per common share: |
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| Income (loss) from continuing operations |
$ | 0.27 | $ | (0.12 | ) | $ | 0.32 | $ | (0.45 | ) | ||||||
| Income from discontinued operations |
— | — | — | 0.05 | ||||||||||||
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| Net income (loss) |
$ | 0.27 | $ | (0.12 | ) | $ | 0.32 | $ | (0.40 | ) | ||||||
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| Diluted income (loss) per common share (a): |
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| Income (loss) from continuing operations |
$ | 0.25 | $ | (0.12 | ) | $ | 0.31 | $ | (0.45 | ) | ||||||
| Income from discontinued operations |
— | — | — | 0.05 | ||||||||||||
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| Net income (loss) |
$ | 0.25 | $ | (0.12 | ) | $ | 0.31 | $ | (0.40 | ) | ||||||
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| Weighted-average shares outstanding used in computing income (loss) per common share: |
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| Basic |
40,457 | 49,041 | 46,830 | 50,862 | ||||||||||||
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| Diluted |
44,872 | 49,041 | 48,398 | 50,862 | ||||||||||||
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| (a) | See schedule of Net Income (Loss) Per Common Share below. |
WEBMD HEALTH CORP.
CONSOLIDATED SUPPLEMENTAL FINANCIAL INFORMATION
(In thousands, unaudited)
| Three Months Ended December 31, |
Years Ended December 31, |
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| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Revenue |
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| Public portal advertising and sponsorship |
$ | 124,353 | $ | 112,257 | $ | 433,182 | $ | 391,339 | ||||||||
| Private portal services |
21,924 | 20,481 | 82,111 | 78,527 | ||||||||||||
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| $ | 146,277 | $ | 132,738 | $ | 515,293 | $ | 469,866 | |||||||||
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| Earnings before interest, taxes, non-cash and other items (“Adjusted EBITDA”) (a) |
$ | 40,636 | $ | 30,049 | $ | 122,886 | $ | 73,149 | ||||||||
| Interest, taxes, non-cash and other items (b) |
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| Interest income |
22 | 22 | 76 | 86 | ||||||||||||
| Interest expense |
(5,329 | ) | (5,834 | ) | (22,826 | ) | (23,334 | ) | ||||||||
| Income tax (provision) benefit |
(8,458 | ) | (5,470 | ) | (13,640 | ) | 2,134 | |||||||||
| Depreciation and amortization |
(6,566 | ) | (8,248 | ) | (26,606 | ) | (28,399 | ) | ||||||||
| Non-cash stock-based compensation |
(7,918 | ) | (9,028 | ) | (38,550 | ) | (44,921 | ) | ||||||||
| Loss on convertible notes |
(1,575 | ) | — | (4,871 | ) | — | ||||||||||
| Gain on investments |
— | — | — | 8,074 | ||||||||||||
| Restructuring |
— | (7,579 | ) | — | (7,579 | ) | ||||||||||
| Other expense |
— | — | (1,353 | ) | (2,297 | ) | ||||||||||
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| Income (loss) from continuing operations |
10,812 | (6,088 | ) | 15,116 | (23,087 | ) | ||||||||||
| Income from discontinued operations, net of tax |
— | — | — | 2,743 | ||||||||||||
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| Net income (loss) |
$ | 10,812 | $ | (6,088 | ) | $ | 15,116 | $ | (20,344 | ) | ||||||
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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, unaudited)
| December 31, | ||||||||
| 2013 | 2012 | |||||||
| Assets |
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| Cash and cash equivalents |
$ | 824,880 | $ | 991,835 | ||||
| Accounts receivable, net |
124,232 | 106,622 | ||||||
| Prepaid expenses and other current assets |
13,243 | 13,882 | ||||||
| Deferred tax assets |
13,620 | 10,328 | ||||||
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| Total current assets |
975,975 | 1,122,667 | ||||||
| Property and equipment, net |
64,884 | 66,604 | ||||||
| Goodwill |
202,980 | 202,104 | ||||||
| Intangible assets, net |
13,834 | 16,105 | ||||||
| Deferred tax assets |
38,802 | 56,039 | ||||||
| Other assets |
29,153 | 27,106 | ||||||
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| Total Assets |
$ | 1,325,628 | $ | 1,490,625 | ||||
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| Liabilities and Stockholders’ Equity |
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| Accrued expenses |
$ | 73,739 | $ | 64,256 | ||||
| Deferred revenue |
85,148 | 92,176 | ||||||
| Liabilities of discontinued operations |
1,506 | 1,506 | ||||||
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| Total current liabilities |
160,393 | 157,938 | ||||||
| 2.25% convertible notes due 2016 |
252,232 | 400,000 | ||||||
| 2.50% convertible notes due 2018 |
400,000 | 400,000 | ||||||
| 1.50% convertible notes due 2020 |
300,000 | — | ||||||
| Other long-term liabilities |
22,103 | 22,698 | ||||||
| Stockholders’ equity |
190,900 | 509,989 | ||||||
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| Total Liabilities and Stockholders’ Equity |
$ | 1,325,628 | $ | 1,490,625 | ||||
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WEBMD HEALTH CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
| Years Ended December 31, |
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| 2013 | 2012 | |||||||
| Cash flows from operating activities: |
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| Net income (loss) |
$ | 15,116 | $ | (20,344 | ) | |||
| 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 |
26,606 | 28,399 | ||||||
| Non-cash interest, net |
4,192 | 4,326 | ||||||
| Non-cash stock-based compensation |
38,550 | 44,921 | ||||||
| Deferred income taxes |
13,070 | (2,337 | ) | |||||
| Loss on convertible notes |
4,871 | — | ||||||
| Gain on investments |
— | (8,074 | ) | |||||
| Changes in operating assets and liabilities: |
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| Accounts receivable |
(17,610 | ) | 14,713 | |||||
| Prepaid expenses and other, net |
266 | (1,589 | ) | |||||
| Accrued expenses and other long-term liabilities |
8,061 | 9,429 | ||||||
| Deferred revenue |
(7,028 | ) | 4,121 | |||||
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| Net cash provided by continuing operations |
86,094 | 70,822 | ||||||
| Net cash provided by discontinued operations |
— | 4,324 | ||||||
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| Net cash provided by operating activities |
86,094 | 75,146 | ||||||
| Cash flows from investing activities: |
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| Proceeds received from ARS option |
— | 9,269 | ||||||
| Purchases of property and equipment |
(22,341 | ) | (35,171 | ) | ||||
| Proceeds from sale of property and equipment |
1,381 | — | ||||||
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| Net cash used in investing activities |
(20,960 | ) | (25,902 | ) | ||||
| Cash flows from financing activities: |
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| Proceeds from exercise of stock options |
29,724 | 827 | ||||||
| Cash used for withholding taxes due on stock-based awards |
(12,526 | ) | (2,740 | ) | ||||
| Net proceeds from issuance of convertible notes |
291,823 | — | ||||||
| Repurchase of convertible notes |
(150,354 | ) | — | |||||
| Repurchase of shares through tender offers |
(170,516 | ) | (150,759 | ) | ||||
| Purchases of treasury stock |
(220,298 | ) | (26,331 | ) | ||||
| Excess tax benefit on stock-based awards |
58 | 377 | ||||||
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| Net cash used in financing activities |
(232,089 | ) | (178,626 | ) | ||||
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| Net decrease in cash and cash equivalents |
(166,955 | ) | (129,382 | ) | ||||
| 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 |
$ | 824,880 | $ | 991,835 | ||||
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WEBMD HEALTH CORP.
NET INCOME (LOSS) PER COMMON SHARE
(In thousands, except per share data, unaudited)
| Three Months Ended | Years Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Numerator: |
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| Income (loss) from continuing operations — Basic |
$ | 10,812 | $ | (6,088 | ) | $ | 15,116 | $ | (23,087 | ) | ||||||
| Interest expense on 1.50% convertible notes, net of tax |
326 | — | — | — | ||||||||||||
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| Income (loss) from continuing operations — Diluted |
$ | 11,138 | $ | (6,088 | ) | $ | 15,116 | $ | (23,087 | ) | ||||||
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| Income from discontinued operations, net of tax — Basic and Diluted |
$ | — | $ | — | $ | — | $ | 2,743 | ||||||||
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| Denominator: |
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| Weighted-average shares — Basic |
40,457 | 49,041 | 46,830 | 50,862 | ||||||||||||
| Stock options and restricted stock |
2,192 | — | 1,568 | — | ||||||||||||
| 1.50% convertible notes |
2,223 | — | — | — | ||||||||||||
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| Adjusted weighted-average shares after assumed conversions — Diluted |
44,872 | 49,041 | 48,398 | 50,862 | ||||||||||||
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| Basic income (loss) per common share: |
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| Income (loss) from continuing operations |
$ | 0.27 | $ | (0.12 | ) | $ | 0.32 | $ | (0.45 | ) | ||||||
| Income from discontinued operations |
— | — | — | 0.05 | ||||||||||||
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| Net income (loss) |
$ | 0.27 | $ | (0.12 | ) | $ | 0.32 | $ | (0.40 | ) | ||||||
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| Diluted income (loss) per common share: |
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| Income (loss) from continuing operations |
$ | 0.25 | $ | (0.12 | ) | $ | 0.31 | $ | (0.45 | ) | ||||||
| Income from discontinued operations |
— | — | — | 0.05 | ||||||||||||
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| Net income (loss) |
$ | 0.25 | $ | (0.12 | ) | $ | 0.31 | $ | (0.40 | ) | ||||||
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