EX-99.1 4 g19482exv99w1.htm EX-99.1 EX-99.1
Exhibit 99.1
 
Selected Financial Data
 
The following selected consolidated financial data should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and with the consolidated financial statements and notes thereto, which are included in Exhibits 99.2 and 99.3.
 
                                         
    Years Ended December 31,(1)(5)  
    2008     2007     2006(2)(3)(4)     2005     2004  
    (In thousands, except per share data)  
 
Consolidated Statements of Operations Data:
                                       
Revenue
  $ 373,462     $ 319,232     $ 899,585     $ 842,660     $ 802,444  
                                         
Cost of operations
    135,138       114,000       542,723       525,405       510,661  
Sales and marketing
    106,080       91,035       116,258       101,939       111,834  
General and administrative
    88,053       102,661       130,056       116,589       105,042  
Depreciation and amortization
    28,410       27,808       44,073       43,013       38,611  
Interest income
    35,300       42,035       32,339       21,527       18,708  
Interest expense
    26,428       25,887       25,472       18,442       19,249  
Gain on sale of EBS Master LLC
    538,024       —       —       —       —  
Impairment of auction rate securities
    60,108       —       —       —       —  
Restructuring
    7,416       —       —       —       —  
Gain on 2006 EBS Sale
    —       399       352,297       —       —  
Other (expense) income, net
    (5,949 )     3,406       (4,252 )     (27,965 )     (13,308 )
                                         
Income from continuing operations before income tax provision (benefit)
    489,204       3,681       421,387       30,834       22,447  
Income tax provision (benefit)
    26,638       (9,053 )     50,033       (2,461 )     3,995  
Equity in earnings of EBS Master LLC
    4,007       28,566       763       —       —  
                                         
Consolidated income from continuing operations
    466,573       41,300       372,117       33,295       18,452  
Consolidated income (loss) from discontinued operations, net of tax
    94,682       (18,048 )     393,527       34,170       18,159  
                                         
Consolidated net income inclusive of noncontrolling interest
    561,255       23,252       765,644       67,465       36,611  
Income attributable to noncontrolling interest
    (1,032 )     (10,667 )     (405 )     (775 )     —  
                                         
Net income attributable to HLTH stockholders
  $ 560,223     $ 12,585     $ 765,239     $ 66,690     $ 36,611  
                                         
Amounts attributable to HLTH stockholders:
                                       
Income from continuing operations
  $ 465,725     $ 31,845     $ 371,844     $ 32,725     $ 18,452  
Income (loss) from discontinued operations
    94,498       (19,260 )     393,395       33,965       18,159  
                                         
Net income attributable to HLTH stockholders
  $ 560,223     $ 12,585     $ 765,239     $ 66,690     $ 36,611  
                                         
Basic income (loss) per common share:
                                       
Income from continuing operations
  $ 2.66     $ 0.18     $ 1.33     $ 0.10     $ 0.06  
Income (loss) from discontinued operations
    0.54       (0.11 )     1.41       0.10       0.05  
                                         
Net income attributable to HLTH stockholders
  $ 3.20     $ 0.07     $ 2.74     $ 0.20     $ 0.11  
                                         
Diluted income (loss) per common share:
                                       
Income from continuing operations
  $ 2.19     $ 0.16     $ 1.20     $ 0.09     $ 0.06  
Income (loss) from discontinued operations
    0.42       (0.10 )     1.18       0.10       0.05  
                                         
Net income attributable to HLTH stockholders
  $ 2.61     $ 0.06     $ 2.38     $ 0.19     $ 0.11  
                                         
Weighted-average shares outstanding used in computing net income (loss) per common share:
                                       
Basic
    174,928       179,330       279,234       341,747       320,080  
                                         
Diluted
    220,127       188,763       331,642       352,852       333,343  
                                         
 


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    As of December 31,(1)(5)  
    2008     2007     2006(2)(3)     2005     2004  
    (In thousands)  
 
Consolidated Balance Sheets Data:
                                       
Cash, cash equivalents and investments
  $ 918,268     $ 830,120     $ 651,464     $ 427,433     $ 617,493  
Working capital (excluding assets and liabilities of discontinued operations)
    633,462       860,181       617,101       397,555       43,681  
Total assets
    1,501,734       1,651,481       1,469,795       2,213,558       2,309,419  
Convertible notes, net of discount
    614,018       605,776       598,121       590,987       649,999  
Convertible redeemable exchangeable preferred stock
    —       —       98,768       98,533       98,299  
Noncontrolling interest in WHC
    134,223       131,353       101,860       43,096       —  
HLTH stockholders’ equity
    496,698       642,809       422,853       1,118,237       1,214,876  
 
 
(1) On July 22, 2008, we completed the sale of our ViPS segment and in March 2009 and February 2008 we decided to divest WebMD’s Little Blue Book print directory business and the Porex segment, respectively. Accordingly, the selected consolidated financial data has been reclassified to reflect the historical results for these businesses as discontinued operations for all periods presented.
 
(2) For the year ended December 31, 2006, the consolidated financial position and results of operations reflect the sale of a 52% interest in our Emdeon Business Services segment (which we refer to as EBS), as of November 16, 2006. Accordingly, the consolidated balance sheet as of December 31, 2006 excludes the assets and liabilities of EBS and includes an investment in EBS Master LLC accounted for under the equity method of accounting related to our 48% ownership, and the consolidated statement of operations for the year ended December 31, 2006 includes the operations of EBS for the period January 1, 2006 through November 16, 2006 and our 48% equity in earnings of EBS Master LLC from November 17, 2006 through December 31, 2006.
 
(3) On September 14, 2006, we completed the sale of the Emdeon Practice Services segment. Accordingly, this selected consolidated financial data has been reclassified to reflect the historical results of the Emdeon Practice Services segment as a discontinued operation for this and all prior periods presented.
 
(4) On January 1, 2006, we adopted Statement of Financial Accounting Standards No. 123 “(Revised 2004): Share Based Payment” that resulted in additional non-cash stock-based compensation expense beginning in 2006 and subsequent periods. See Results of Operations within Management’s Discussion and Analysis of Financial Condition and Results of Operations, which is included in Exhibit 99.2.
 
(5) The selected financial data for the years ended December 31, 2005 and 2004, do not reflect the adoption of Financial Accounting Standards Board’s Staff Position No. APB 14-1, “Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement)” for our 31/4% Convertible Notes, which were outstanding during those periods and were fully redeemed or converted to equity during the year ended December 31, 2005.

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