Attached files
| file | filename |
|---|---|
| EX-99.5 - EX-99.5 - WebMD Health Corp. | d342652dex995.htm |
| EX-99.4 - EX-99.4 - WebMD Health Corp. | d342652dex994.htm |
| EX-99.3 - EX-99.3 - WebMD Health Corp. | d342652dex993.htm |
| EX-99.1 - EX-99.1 - WebMD Health Corp. | d342652dex991.htm |
| 8-K - 8-K - WebMD Health Corp. | d342652d8k.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, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Revenue |
$ | 207,472 | $ | 192,129 | $ | 705,046 | $ | 636,399 | ||||||||
| Cost of operations |
72,895 | 69,475 | 266,654 | 247,311 | ||||||||||||
| Sales and marketing |
41,328 | 40,129 | 145,962 | 138,025 | ||||||||||||
| General and administrative |
23,397 | 24,183 | 91,141 | 91,580 | ||||||||||||
| Depreciation and amortization |
7,721 | 7,418 | 30,792 | 30,521 | ||||||||||||
| Interest income |
938 | 15 | 2,545 | 51 | ||||||||||||
| Interest expense |
7,066 | 5,099 | 24,496 | 23,123 | ||||||||||||
| Loss on convertible notes |
— | — | — | 2,058 | ||||||||||||
| Gain on investments |
— | — | — | 139 | ||||||||||||
| Other expense |
— | — | 1,712 | 4,100 | ||||||||||||
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| Income before income tax provision |
56,003 | 45,840 | 146,834 | 99,871 | ||||||||||||
| Income tax provision |
19,815 | 18,379 | 55,530 | 35,847 | ||||||||||||
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| Net income |
$ | 36,188 | $ | 27,461 | $ | 91,304 | $ | 64,024 | ||||||||
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| Net income per common share: |
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| Basic |
$ | 0.95 | $ | 0.75 | $ | 2.41 | $ | 1.75 | ||||||||
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| Diluted |
$ | 0.73 | $ | 0.60 | $ | 1.97 | $ | 1.48 | ||||||||
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| Weighted-average shares outstanding used in computing income per common share: |
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| Basic |
38,006 | 36,583 | 37,854 | 36,600 | ||||||||||||
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| Diluted |
55,211 | 51,338 | 54,179 | 52,653 | ||||||||||||
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WEBMD HEALTH CORP.
CONSOLIDATED SUPPLEMENTAL FINANCIAL INFORMATION
(In thousands, unaudited)
| Three Months Ended | Years Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Revenue |
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| Advertising and sponsorship |
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| Biopharma and medical device |
$ | 132,166 | $ | 119,528 | $ | 428,519 | $ | 371,220 | ||||||||
| OTC, CPG and other |
38,847 | 38,758 | 132,754 | 127,805 | ||||||||||||
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| 171,013 | 158,286 | 561,273 | 499,025 | |||||||||||||
| Health services |
28,803 | 27,218 | 113,937 | 110,441 | ||||||||||||
| Information services |
7,656 | 6,625 | 29,836 | 26,933 | ||||||||||||
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| $ | 207,472 | $ | 192,129 | $ | 705,046 | $ | 636,399 | |||||||||
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| Net income |
$ | 36,188 | $ | 27,461 | $ | 91,304 | $ | 64,024 | ||||||||
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| Interest, taxes, non-cash and other items (a) |
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| Interest income |
(938 | ) | (15 | ) | (2,545 | ) | (51 | ) | ||||||||
| Interest expense |
7,066 | 5,099 | 24,496 | 23,123 | ||||||||||||
| Income tax provision |
19,815 | 18,379 | 55,530 | 35,847 | ||||||||||||
| Depreciation and amortization |
7,721 | 7,418 | 30,792 | 30,521 | ||||||||||||
| Non-cash stock-based compensation |
8,291 | 9,012 | 29,329 | 33,743 | ||||||||||||
| Loss on convertible notes |
— | — | — | 2,058 | ||||||||||||
| Gain on investments |
— | — | — | (139 | ) | |||||||||||
| Other expense |
— | — | 1,712 | 4,100 | ||||||||||||
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| Earnings before interest, taxes, non-cash and other
items |
$ | 78,143 | $ | 67,354 | $ | 230,618 | $ | 193,226 | ||||||||
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| (a) | Reconciliation of net income to Adjusted EBITDA. |
| (b) | See Annex A-Explanation of Non-GAAP Financial Measures. |
WEBMD HEALTH CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
| December 31, | ||||||||
| 2016 | 2015 | |||||||
| (unaudited) | ||||||||
| Assets |
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| Cash and cash equivalents |
$ | 492,424 | $ | 641,165 | ||||
| Accounts receivable, net |
179,454 | 174,313 | ||||||
| Investments |
498,500 | — | ||||||
| Prepaid expenses and other current assets |
15,294 | 18,998 | ||||||
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| Total current assets |
1,185,672 | 834,476 | ||||||
| Property and equipment, net |
83,296 | 81,027 | ||||||
| Goodwill |
202,980 | 202,980 | ||||||
| Intangible assets, net |
7,774 | 10,894 | ||||||
| Deferred tax assets, net |
14,544 | 15,694 | ||||||
| Other assets |
6,920 | 10,852 | ||||||
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| Total Assets |
$ | 1,501,186 | $ | 1,155,923 | ||||
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| Liabilities and Stockholders’ Equity |
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| Accrued expenses |
$ | 78,597 | $ | 80,664 | ||||
| Deferred revenue |
105,310 | 102,715 | ||||||
| 2.25% convertible notes due 2016, net |
— | 102,523 | ||||||
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| Total current liabilities |
183,907 | 285,902 | ||||||
| 2.50% convertible notes due 2018, net |
398,066 | 396,281 | ||||||
| 1.50% convertible notes due 2020, net |
295,432 | 294,266 | ||||||
| 2.625% convertible notes due 2023, net |
351,190 | — | ||||||
| Other long-term liabilities |
28,731 | 23,246 | ||||||
| Stockholders’ equity |
243,860 | 156,228 | ||||||
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| Total Liabilities and Stockholders’ Equity |
$ | 1,501,186 | $ | 1,155,923 | ||||
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WEBMD HEALTH CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
| Years Ended | ||||||||
| December 31, | ||||||||
| 2016 | 2015 | |||||||
| Cash flows from operating activities: |
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| Net income |
$ | 91,304 | $ | 64,024 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
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| Depreciation and amortization |
30,792 | 30,521 | ||||||
| Non-cash interest, net |
3,906 | 4,172 | ||||||
| Non-cash stock-based compensation |
29,329 | 33,743 | ||||||
| Deferred income taxes |
1,083 | (7,713 | ) | |||||
| Loss on convertible notes |
— | 2,058 | ||||||
| Gain on investments |
— | (139 | ) | |||||
| Changes in operating assets and liabilities: |
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| Accounts receivable |
(5,141 | ) | (37,507 | ) | ||||
| Prepaid expenses and other, net |
4,039 | (4,132 | ) | |||||
| Accrued expenses and other long-term liabilities |
3,246 | 9,606 | ||||||
| Deferred revenue |
2,595 | 12,930 | ||||||
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| Net cash provided by operating activities |
161,153 | 107,563 | ||||||
| Cash flows from investing activities: |
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| Purchases of property and equipment |
(29,785 | ) | (48,372 | ) | ||||
| Purchases of investments |
(1,446,410 | ) | — | |||||
| Maturity of investments |
948,078 | 139 | ||||||
| Partial redemption of cost-method investment |
2,599 | — | ||||||
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| Net cash used in investing activities |
(525,518 | ) | (48,233 | ) | ||||
| Cash flows from financing activities: |
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| Proceeds from exercise of stock options |
65,309 | 21,939 | ||||||
| Cash used for withholding taxes due on stock-based awards |
(17,599 | ) | (6,438 | ) | ||||
| Net proceeds from issuance of convertible notes |
350,394 | — | ||||||
| Maturity of convertible notes |
(102,682 | ) | (151,038 | ) | ||||
| Repurchase of shares through tender offers |
(110,413 | ) | — | |||||
| Purchases of treasury stock |
(23,643 | ) | (28,406 | ) | ||||
| Excess tax benefit on stock-based awards |
54,258 | 39,002 | ||||||
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| Net cash provided by (used in) financing activities |
215,624 | (124,941 | ) | |||||
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| Net decrease in cash and cash equivalents |
(148,741 | ) | (65,611 | ) | ||||
| Cash and cash equivalents at beginning of period |
641,165 | 706,776 | ||||||
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| Cash and cash equivalents at end of period |
$ | 492,424 | $ | 641,165 | ||||
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WEBMD HEALTH CORP.
NET INCOME PER COMMON SHARE
(In thousands, except per share data, unaudited)
| Three Months Ended | Years Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Numerator: |
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| Net income – Basic |
$ | 36,188 | $ | 27,461 | $ | 91,304 | $ | 64,024 | ||||||||
| Interest expense on 1.50% convertible notes, net of tax |
878 | 864 | 3,513 | 3,456 | ||||||||||||
| Interest expense on 2.50% convertible notes, net of tax |
1,827 | 1,797 | 7,307 | 7,189 | ||||||||||||
| Interest expense on 2.25% convertible notes, net of tax |
— | 449 | 457 | 3,460 | ||||||||||||
| Interest expense on 2.625% convertible notes, net of tax |
1,676 | — | 3,911 | — | ||||||||||||
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| Net income – Diluted |
$ | 40,569 | $ | 30,571 | $ | 106,492 | $ | 78,129 | ||||||||
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| Denominator: |
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| Weighted-average shares – Basic |
38,006 | 36,583 | 37,854 | 36,600 | ||||||||||||
| Stock options and restricted stock |
1,158 | 1,427 | 1,658 | 1,412 | ||||||||||||
| 1.50% convertible notes |
5,699 | 5,694 | 5,695 | 5,694 | ||||||||||||
| 2.50% convertible notes |
6,210 | 6,205 | 6,206 | 6,205 | ||||||||||||
| 2.25% convertible notes |
— | 1,429 | 353 | 2,742 | ||||||||||||
| 2.625% convertible notes |
4,138 | — | 2,413 | — | ||||||||||||
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| Adjusted weighted-average shares after assumed conversions – Diluted |
55,211 | 51,338 | 54,179 | 52,653 | ||||||||||||
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| Net income per common share: |
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| Basic |
$ | 0.95 | $ | 0.75 | $ | 2.41 | $ | 1.75 | ||||||||
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| Diluted |
$ | 0.73 | $ | 0.60 | $ | 1.97 | $ | 1.48 | ||||||||
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