Attached files
file | filename |
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8-K - 8-K - WebMD Health Corp. | d716070d8k.htm |
EX-99.3 - EX-99.3 - WebMD Health Corp. | d716070dex993.htm |
EX-99.4 - EX-99.4 - WebMD Health Corp. | d716070dex994.htm |
EX-99.1 - EX-99.1 - WebMD Health Corp. | d716070dex991.htm |
Exhibit 99.2
WEBMD HEALTH CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data, unaudited)
Three Months Ended March 31, |
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2014 | 2013 | |||||||
Revenue |
$ | 133,832 | $ | 112,762 | ||||
Cost of operations |
52,564 | 46,943 | ||||||
Sales and marketing |
32,911 | 30,933 | ||||||
General and administrative |
23,781 | 23,534 | ||||||
Depreciation and amortization |
7,328 | 6,853 | ||||||
Interest income |
15 | 21 | ||||||
Interest expense |
6,172 | 5,832 | ||||||
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Income (loss) before income income tax provision |
11,091 | (1,312 | ) | |||||
Income tax provision |
4,825 | 226 | ||||||
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Net income (loss) |
$ | 6,266 | $ | (1,538 | ) | |||
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Net income (loss) per common share: |
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Basic |
$ | 0.16 | $ | (0.03 | ) | |||
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Diluted |
$ | 0.15 | $ | (0.03 | ) | |||
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Weighted-average shares outstanding used in computing income (loss) per common share: |
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Basic |
39,268 | 49,007 | ||||||
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Diluted |
41,852 | 49,007 | ||||||
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WEBMD HEALTH CORP.
CONSOLIDATED SUPPLEMENTAL FINANCIAL INFORMATION
(In thousands, unaudited)
Three Months Ended March 31, |
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2014 | 2013 | |||||||
Revenue |
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Public portal advertising and sponsorship |
$ | 109,203 | $ | 93,438 | ||||
Private portal services |
24,629 | 19,324 | ||||||
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$ | 133,832 | $ | 112,762 | |||||
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Earnings before interest, taxes, non-cash and other items (Adjusted EBITDA) (a) |
$ | 33,266 | $ | 21,289 | ||||
Interest, taxes, non-cash and other items (b) |
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Interest income |
15 | 21 | ||||||
Interest expense |
(6,172 | ) | (5,832 | ) | ||||
Income tax provision |
(4,825 | ) | (226 | ) | ||||
Depreciation and amortization |
(7,328 | ) | (6,853 | ) | ||||
Non-cash stock-based compensation |
(8,690 | ) | (9,937 | ) | ||||
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Net income (loss) |
$ | 6,266 | $ | (1,538 | ) | |||
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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)
March 31, 2014 | December 31, 2013 | |||||||
(unaudited) | ||||||||
Assets |
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Cash and cash equivalents |
$ | 778,401 | $ | 824,880 | ||||
Accounts receivable, net |
134,241 | 124,232 | ||||||
Prepaid expenses and other current assets |
12,544 | 13,243 | ||||||
Deferred tax assets |
13,588 | 13,620 | ||||||
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Total current assets |
938,774 | 975,975 | ||||||
Property and equipment, net |
62,151 | 64,884 | ||||||
Goodwill |
202,980 | 202,980 | ||||||
Intangible assets, net |
13,266 | 13,834 | ||||||
Deferred tax assets |
38,649 | 38,802 | ||||||
Other assets |
28,144 | 29,153 | ||||||
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Total Assets |
$ | 1,283,964 | $ | 1,325,628 | ||||
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Liabilities and Stockholders Equity |
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Accrued expenses |
$ | 54,910 | $ | 73,739 | ||||
Deferred revenue |
99,638 | 85,148 | ||||||
Liabilities of discontinued operations |
1,506 | 1,506 | ||||||
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Total current liabilities |
156,054 | 160,393 | ||||||
2.25% convertible notes due 2016 |
252,232 | 252,232 | ||||||
2.50% convertible notes due 2018 |
400,000 | 400,000 | ||||||
1.50% convertible notes due 2020 |
300,000 | 300,000 | ||||||
Other long-term liabilities |
21,673 | 22,103 | ||||||
Stockholders equity |
154,005 | 190,900 | ||||||
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Total Liabilities and Stockholders Equity |
$ | 1,283,964 | $ | 1,325,628 | ||||
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WEBMD HEALTH CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
Three Months Ended March 31, |
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2014 | 2013 | |||||||
Cash flows from operating activities: |
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Net income (loss) |
$ | 6,266 | $ | (1,538 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
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Depreciation and amortization |
7,328 | 6,853 | ||||||
Non-cash interest, net |
1,128 | 1,082 | ||||||
Non-cash stock-based compensation |
8,690 | 9,937 | ||||||
Deferred income taxes |
201 | (99 | ) | |||||
Changes in operating assets and liabilities: |
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Accounts receivable |
(10,009 | ) | 4,809 | |||||
Prepaid expenses and other, net |
210 | (193 | ) | |||||
Accrued expenses and other long-term liabilities |
(20,401 | ) | (14,850 | ) | ||||
Deferred revenue |
14,490 | 5,044 | ||||||
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Net cash provided by operating activities |
7,903 | 11,045 | ||||||
Cash flows from investing activities: |
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Purchases of property and equipment |
(5,533 | ) | (2,876 | ) | ||||
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Net cash used in investing activities |
(5,533 | ) | (2,876 | ) | ||||
Cash flows from financing activities: |
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Proceeds from exercise of stock options |
17,482 | 672 | ||||||
Cash used for withholding taxes due on stock-based awards |
(5,326 | ) | (174 | ) | ||||
Purchases of treasury stock |
(65,052 | ) | (1,281 | ) | ||||
Excess tax benefit on stock-based awards |
4,047 | | ||||||
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Net cash used in financing activities |
(48,849 | ) | (783 | ) | ||||
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Net (decrease) increase in cash and cash equivalents |
(46,479 | ) | 7,386 | |||||
Cash and cash equivalents at beginning of period |
824,880 | 991,835 | ||||||
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Cash and cash equivalents at end of period |
$ | 778,401 | $ | 999,221 | ||||
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