Attached files
| file | filename |
|---|---|
| 8-K - 8-K - WebMD Health Corp. | d92520d8k.htm |
| EX-99.1 - EX-99.1 - WebMD Health Corp. | d92520dex991.htm |
| EX-99.3 - EX-99.3 - WebMD Health Corp. | d92520dex993.htm |
| EX-99.4 - EX-99.4 - WebMD Health Corp. | d92520dex994.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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| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Revenue |
$ | 152,607 | $ | 143,490 | $ | 444,270 | $ | 417,722 | ||||||||
| Cost of operations |
59,552 | 56,398 | 177,836 | 163,418 | ||||||||||||
| Sales and marketing |
32,850 | 32,950 | 97,896 | 99,182 | ||||||||||||
| General and administrative |
22,942 | 23,243 | 67,397 | 69,363 | ||||||||||||
| Depreciation and amortization |
7,266 | 7,667 | 23,103 | 22,037 | ||||||||||||
| Interest income |
10 | 19 | 36 | 51 | ||||||||||||
| Interest expense |
5,681 | 6,171 | 18,024 | 18,515 | ||||||||||||
| Loss on convertible notes |
2,058 | — | 2,058 | — | ||||||||||||
| Gain on investments |
— | — | 139 | — | ||||||||||||
| Other expense |
— | — | 4,100 | — | ||||||||||||
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| Income before income tax provision |
22,268 | 17,080 | 54,031 | 45,258 | ||||||||||||
| Income tax provision |
9,080 | 7,275 | 17,468 | 19,471 | ||||||||||||
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| Net income |
$ | 13,188 | $ | 9,805 | $ | 36,563 | $ | 25,787 | ||||||||
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| Net income per common share: |
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| Basic |
$ | 0.36 | $ | 0.26 | $ | 1.00 | $ | 0.67 | ||||||||
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| Diluted |
$ | 0.32 | $ | 0.23 | $ | 0.89 | $ | 0.61 | ||||||||
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| Weighted-average shares outstanding used in computing income per common share: |
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| Basic |
36,721 | 37,960 | 36,606 | 38,349 | ||||||||||||
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| Diluted |
49,958 | 45,757 | 49,912 | 46,364 | ||||||||||||
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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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| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Revenue |
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| Advertising and sponsorship |
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| Biopharma and medical device |
$ | 89,870 | $ | 85,118 | $ | 251,692 | $ | 235,587 | ||||||||
| OTC, CPG and other |
28,850 | 27,370 | 89,047 | 91,342 | ||||||||||||
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| 118,720 | 112,488 | 340,739 | 326,929 | |||||||||||||
| Private portal services |
27,460 | 25,795 | 83,223 | 74,612 | ||||||||||||
| Information services |
6,427 | 5,207 | 20,308 | 16,181 | ||||||||||||
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| $ | 152,607 | $ | 143,490 | $ | 444,270 | $ | 417,722 | |||||||||
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| Earnings before interest, taxes, non-cash and other items |
$ | 46,405 | $ | 39,301 | $ | 125,872 | $ | 110,484 | ||||||||
| Interest, taxes, non-cash and other items (b) |
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| Interest income |
10 | 19 | 36 | 51 | ||||||||||||
| Interest expense |
(5,681 | ) | (6,171 | ) | (18,024 | ) | (18,515 | ) | ||||||||
| Income tax provision |
(9,080 | ) | (7,275 | ) | (17,468 | ) | (19,471 | ) | ||||||||
| Depreciation and amortization |
(7,266 | ) | (7,667 | ) | (23,103 | ) | (22,037 | ) | ||||||||
| Non-cash stock-based compensation |
(9,142 | ) | (8,402 | ) | (24,731 | ) | (24,725 | ) | ||||||||
| Loss on convertible notes |
(2,058 | ) | — | (2,058 | ) | — | ||||||||||
| Gain on investments |
— | — | 139 | — | ||||||||||||
| Other expense |
— | — | (4,100 | ) | — | |||||||||||
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| Net income |
$ | 13,188 | $ | 9,805 | $ | 36,563 | $ | 25,787 | ||||||||
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| (a) | See Annex A-Explanation of Non-GAAP Financial Measures. |
| (b) | Reconciliation of Adjusted EBITDA to net income. |
WEBMD HEALTH CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
| September 30, 2015 | December 31, 2014 | |||||||
| (unaudited) | ||||||||
| Assets |
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| Cash and cash equivalents |
$ | 612,332 | $ | 706,776 | ||||
| Accounts receivable, net |
147,007 | 136,806 | ||||||
| Prepaid expenses and other current assets |
19,199 | 13,877 | ||||||
| Deferred tax assets |
12,627 | 18,147 | ||||||
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| Total current assets |
791,165 | 875,606 | ||||||
| Property and equipment, net |
64,930 | 59,573 | ||||||
| Goodwill |
202,980 | 202,980 | ||||||
| Intangible assets, net |
11,716 | 14,215 | ||||||
| Deferred tax assets |
2,546 | 18,947 | ||||||
| Other assets |
21,585 | 26,236 | ||||||
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| Total Assets |
$ | 1,094,922 | $ | 1,197,557 | ||||
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| Liabilities and Stockholders’ Equity |
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| Accrued expenses |
$ | 68,317 | $ | 72,658 | ||||
| Deferred revenue |
105,065 | 89,785 | ||||||
| 2.25% convertible notes due 2016 |
102,682 | — | ||||||
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| Total current liabilities |
276,064 | 162,443 | ||||||
| 2.25% convertible notes due 2016 |
— | 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 |
21,965 | 21,293 | ||||||
| Stockholders’ equity |
96,893 | 61,589 | ||||||
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| Total Liabilities and Stockholders’ Equity |
$ | 1,094,922 | $ | 1,197,557 | ||||
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WEBMD HEALTH CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
| Nine Months Ended September 30, |
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| 2015 | 2014 | |||||||
| Cash flows from operating activities: |
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| Net income |
$ | 36,563 | $ | 25,787 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
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| Depreciation and amortization |
23,103 | 22,037 | ||||||
| Non-cash interest, net |
3,276 | 3,384 | ||||||
| Non-cash stock-based compensation |
24,731 | 24,725 | ||||||
| Deferred income taxes |
(7,246 | ) | 6,791 | |||||
| Loss on convertible notes |
2,058 | — | ||||||
| Gain on investments |
(139 | ) | — | |||||
| Changes in operating assets and liabilities: |
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| Accounts receivable |
(10,201 | ) | 10,784 | |||||
| Prepaid expenses and other, net |
(5,692 | ) | (2,429 | ) | ||||
| Accrued expenses and other long-term liabilities |
(4,555 | ) | (9,319 | ) | ||||
| Deferred revenue |
15,280 | (901 | ) | |||||
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| Net cash provided by operating activities |
77,178 | 80,859 | ||||||
| Cash flows from investing activities: |
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| Cash paid in business combination |
— | (3,182 | ) | |||||
| Proceeds from sale of investments |
139 | — | ||||||
| Purchases of property and equipment |
(25,638 | ) | (17,964 | ) | ||||
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| Net cash used in investing activities |
(25,499 | ) | (21,146 | ) | ||||
| Cash flows from financing activities: |
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| Proceeds from exercise of stock options |
15,185 | 35,857 | ||||||
| Cash used for withholding taxes due on stock-based awards |
(3,836 | ) | (31,294 | ) | ||||
| Repurchase of convertible notes |
(151,038 | ) | — | |||||
| Repurchase of shares through tender offers |
— | (97,560 | ) | |||||
| Purchases of treasury stock |
(28,406 | ) | (103,602 | ) | ||||
| Excess tax benefit on stock-based awards |
21,972 | 11,853 | ||||||
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| Net cash used in financing activities |
(146,123 | ) | (184,746 | ) | ||||
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| Net decrease in cash and cash equivalents |
(94,444 | ) | (125,033 | ) | ||||
| Cash and cash equivalents at beginning of period |
706,776 | 824,880 | ||||||
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| Cash and cash equivalents at end of period |
$ | 612,332 | $ | 699,847 | ||||
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WEBMD HEALTH CORP.
NET INCOME PER COMMON SHARE
(In thousands, except per share data, unaudited)
| Three Months Ended September 30, |
Nine Months Ended September 30, |
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| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Numerator: |
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| Net income — Basic |
$ | 13,188 | $ | 9,805 | $ | 36,563 | $ | 25,787 | ||||||||
| Interest expense on 1.50% convertible notes, net of tax |
864 | 864 | 2,592 | 2,592 | ||||||||||||
| Interest expense on 2.50% convertible notes, net of tax |
1,797 | — | 5,392 | — | ||||||||||||
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| Net income — Diluted |
$ | 15,849 | $ | 10,669 | $ | 44,547 | $ | 28,379 | ||||||||
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| Denominator: |
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| Weighted-average shares — Basic |
36,721 | 37,960 | 36,606 | 38,349 | ||||||||||||
| Stock options and restricted stock |
1,338 | 2,113 | 1,407 | 2,333 | ||||||||||||
| 1.50% convertible notes |
5,694 | 5,684 | 5,694 | 5,682 | ||||||||||||
| 2.50% convertible notes |
6,205 | — | 6,205 | — | ||||||||||||
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| Adjusted weighted-average shares after assumed conversions — Diluted |
49,958 | 45,757 | 49,912 | 46,364 | ||||||||||||
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| Net income per common share: |
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| Basic |
$ | 0.36 | $ | 0.26 | $ | 1.00 | $ | 0.67 | ||||||||
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| Diluted |
$ | 0.32 | $ | 0.23 | $ | 0.89 | $ | 0.61 | ||||||||
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