EX-99.2 3 g08650exv99w2.htm EX-99.2 FINANCIAL TABLES EX-99.2 FINANCIAL TABLES
 

Exhibit 99.2
HLTH CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data, unaudited)
                                 
    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2007     2006     2007     2006  
            (Restated)             (Restated)  
Revenue:
                               
Services
  $ 102,129     $ 265,606     $ 200,072     $ 518,351  
Products
    27,165       26,025       51,247       50,474  
 
                       
Total revenue
    129,294       291,631       251,319       568,825  
 
                               
Cost of operations:
                               
Services
    44,129       157,625       88,643       313,984  
Products
    10,772       11,416       20,687       22,231  
 
                       
Total cost of operations
    54,901       169,041       109,330       336,215  
 
                               
Development and engineering
    4,767       9,057       9,341       17,921  
Sales, marketing, general and administrative
    58,340       72,033       118,739       142,213  
Depreciation and amortization
    11,678       17,221       22,405       33,775  
Legal expense
    471       275       791       817  
Interest income
    10,100       4,433       19,774       8,851  
Interest expense
    4,619       4,668       9,336       9,359  
Transition services income
    1,468             3,924        
Other income (expense)
    399       (2,072 )     1,145       (2,072 )
 
                       
Income from continuing operations before income tax provision
    6,485       21,697       6,220       35,304  
Income tax provision
    2,031       6,288       3,021       10,344  
Minority interest in WHC income (loss)
    843       (121 )     958       (593 )
Equity in earnings of EBS Master LLC
    7,575             14,674        
 
                       
Income from continuing operations
    11,186       15,530       16,915       25,553  
(Loss) income from discontinued operations, net of tax
    (56,649 )     6,556       (56,676 )     12,123  
 
                       
Net (loss) income
  $ (45,463 )   $ 22,086     $ (39,761 )   $ 37,676  
 
                       
 
                               
Basic (loss) income per common share:
                               
Income from continuing operations
  $ 0.06     $ 0.05     $ 0.10     $ 0.09  
(Loss) income from discontinued operations
    (0.31 )     0.03       (0.32 )     0.04  
 
                       
Net (loss) income
  $ (0.25 )   $ 0.08     $ (0.22 )   $ 0.13  
 
                       
 
                               
Diluted (loss) income per common share:
                               
Income from continuing operations
  $ 0.06     $ 0.05     $ 0.09     $ 0.09  
(Loss) income from discontinued operations
    (0.30 )     0.02       (0.30 )     0.04  
 
                       
Net (loss) income
  $ (0.24 )   $ 0.07     $ (0.21 )   $ 0.13  
 
                       
 
                               
Weighted-average shares outstanding used in computing (loss) income per common share:
                               
Basic
    180,219       285,086       178,115       286,141  
 
                       
Diluted
    191,032       296,722       188,693       296,107  
 
                       


 

HLTH CORPORATION
CONSOLIDATED SEGMENT INFORMATION
(In thousands, except per share data, unaudited)
                                 
    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2007     2006     2007     2006  
            (Restated)             (Restated)  
Revenue
               
Emdeon Business Services
  $     $ 187,858     $     $ 370,709  
WebMD
    78,479       56,612       151,441       106,663  
ViPS
    25,885       24,845       52,544       48,681  
Porex
    25,003       22,659       47,712       43,246  
Inter-segment eliminations
    (73 )     (343 )     (378 )     (474 )
 
                       
 
  $ 129,294     $ 291,631     $ 251,319     $ 568,825  
 
                       
Earnings before interest, taxes, non-cash and other items (“Adjusted EBITDA”)
                               
Emdeon Business Services
  $     $ 44,765     $     $ 82,972  
WebMD
    15,155       9,599       27,762       16,126  
ViPS
    5,094       5,057       9,934       10,215  
Porex
    7,343       7,045       13,817       12,599  
Corporate
    (6,483 )     (11,495 )     (13,214 )     (22,633 )
 
                       
 
  $ 21,109     $ 54,971     $ 38,299     $ 99,279  
 
                               
Adjusted EBITDA per diluted common share (a)
  $ 0.11     $ 0.19     $ 0.20     $ 0.34  
 
                       
 
Interest, taxes, non-cash and other items (b)
                               
Depreciation and amortization
  $ (11,678 )   $ (17,221 )   $ (22,405 )   $ (33,775 )
Non-cash stock-based compensation
    (8,355 )     (12,282 )     (18,146 )     (24,009 )
Non-cash advertising
          (1,189 )     (2,320 )     (2,794 )
Legal expense
    (471 )     (275 )     (791 )     (817 )
Interest income
    10,100       4,433       19,774       8,851  
Interest expense
    (4,619 )     (4,668 )     (9,336 )     (9,359 )
Income tax provision
    (2,031 )     (6,288 )     (3,021 )     (10,344 )
Minority interest in WHC (income) loss
    (843 )     121       (958 )     593  
Equity in earnings of EBS Master LLC
    7,575             14,674        
Other income (expense)
    399       (2,072 )     1,145       (2,072 )
 
                       
Income from continuing operations
    11,186       15,530       16,915       25,553  
(Loss) income from discontinued operations, net of tax
    (56,649 )     6,556       (56,676 )     12,123  
 
                       
Net (loss) income
  $ (45,463 )   $ 22,086     $ (39,761 )   $ 37,676  
 
                       
 
                               
Basic (loss) income per common share:
                               
Income from continuing operations
  $ 0.06     $ 0.05     $ 0.10     $ 0.09  
(Loss) income from discontinued operations
    (0.31 )     0.03       (0.32 )     0.04  
 
                       
Net (loss) income
  $ (0.25 )   $ 0.08     $ (0.22 )   $ 0.13  
 
                       
 
                               
Diluted (loss) income per common share:
                               
Income from continuing operations
  $ 0.06     $ 0.05     $ 0.09     $ 0.09  
(Loss) income from discontinued operations
    (0.30 )     0.02       (0.30 )     0.04  
 
                       
Net (loss) income
  $ (0.24 )   $ 0.07     $ (0.21 )   $ 0.13  
 
                       
 
                               
Weighted-average shares outstanding used in computing (loss) income per common share:
                               
Basic
    180,219       285,086       178,115       286,141  
 
                       
Diluted
    191,032       296,722       188,693       296,107  
 
                       
 
(a)   Adjusted EBITDA per diluted common share is based on the weighted-average shares outstanding used in computing diluted (loss) income per common share.
(b)   Reconciliation of Adjusted EBITDA to net (loss) income (see Annex A — Explanation of Non-GAAP Financial Measures).


 

HLTH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
                 
    June 30, 2007     December 31, 2006  
Assets
               
Cash and cash equivalents
  $ 509,969     $ 614,691  
Short-term investments
    228,922       34,140  
Accounts receivable, net
    117,045       121,608  
Inventory
    9,709       9,922  
Due from EBS Master LLC
    286       30,716  
Prepaid expenses and other current assets
    62,232       31,871  
 
           
Total current assets
    928,163       842,948  
 
               
Marketable equity securities
    3,166       2,633  
Property and equipment, net
    74,376       72,040  
Goodwill
    333,412       337,669  
Intangible assets, net
    121,260       129,473  
Investment in EBS Master LLC
    20,820       1,521  
Other assets
    39,607       65,659  
 
           
Total Assets
  $ 1,520,804     $ 1,451,943  
 
           
 
               
Liabilities and Stockholders’ Equity
               
Accounts payable
  $ 3,960     $ 3,996  
Accrued expenses
    58,043       113,175  
Deferred revenue
    100,154       87,438  
Liabilities of discontinued operations
    55,893        
 
           
Total current liabilities
    218,050       204,609  
 
               
Convertible notes
    650,000       650,000  
Other long-term liabilities
    32,357       24,179  
 
               
Minority interest in WebMD Health Corp. (WHC)
    111,876       101,860  
 
               
Convertible redeemable exchangeable preferred stock
          98,768  
 
               
Stockholders’ equity
    508,521       372,527  
 
               
 
           
Total Liabilities and Stockholders’ Equity
  $ 1,520,804     $ 1,451,943  
 
           

 


 

HLTH CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
                 
    Six Months Ended  
    June 30,  
    2007     2006  
            (Restated)  
Cash flows from operating activities:
               
Net (loss) income
  $ (39,761 )   $ 37,676  
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
               
Loss (income) from discontinued operations, net of tax
    56,676       (12,123 )
Depreciation and amortization
    22,405       33,775  
Minority interest in WHC income (loss)
    958       (593 )
Equity in earnings of EBS Master LLC
    (14,674 )      
Amortization of debt issuance costs
    1,447       1,461  
Non-cash advertising
    2,320       2,794  
Non-cash stock-based compensation
    18,146       24,009  
Deferred income taxes
    1,052       1,736  
EBS working capital adjustment
    (399 )      
Reversal of income tax valuation allowance applied to goodwill
    760       4,043  
Changes in operating assets and liabilities:
               
Accounts receivable
    4,922       (5,233 )
Inventory
    272       (138 )
Prepaid expenses and other, net
    (514 )     (3,700 )
Accounts payable
    (36 )     3,980  
Accrued expenses and other long-term liabilities
    (45,430 )     3,572  
Deferred revenue
    12,716       8,137  
 
           
Net cash provided by continuing operations
    20,860       99,396  
Net cash (used in) provided by discontinued operations
    (1,880     15,825  
 
           
Net cash provided by operating activities
    18,980       115,221  
 
               
Cash flows from investing activities:
               
Proceeds from maturities and sales of available-for-sale securities
    194,096       398,870  
Purchases of available-for-sale securities
    (388,942 )     (426,470 )
Purchases of property and equipment
    (12,558 )     (27,429 )
Cash paid in business combinations, net of cash acquired
          (84,846 )
Proceeds from the sale of EBS
    2,898        
Proceeds from advances to EBS Master LLC
    19,730        
Other changes in equity of discontinued operations
          15,467  
 
           
Net cash used in continuing operations
    (184,776 )     (124,408 )
Net cash used in discontinued operations
          (17,009 )
 
           
Net cash used in investing activities
    (184,776 )     (141,417 )
 
               
Cash flows from financing activities:
               
Proceeds from issuance of HLTH and WHC common stock
    103,263       30,433  
Tax benefit on stock-based awards
    457        
Purchases of treasury stock under repurchase program
    (42,906 )     (71,843 )
Payments of notes payable and other
    (101 )     (173 )
 
           
Net cash provided by (used in) financing activities
    60,713       (41,583 )
 
               
Effect of exchange rates on cash
    361       479  
 
           
 
               
Net decrease in cash and cash equivalents
    (104,722 )     (67,300 )
Change in cash of discontinued operations
          1,184  
Cash and cash equivalents at beginning of period
    614,691       155,616  
 
           
Cash and cash equivalents at end of period
  $ 509,969     $ 89,500