EX-99.2 4 g81238exv99w2.htm EX-99.2 FINANCIAL TABLES ACCOMPANYING EXHIBIT 99.1 EX-99.2 FINANCIAL TABLES ACCOMPANYING EXHIBIT 99.1
 

EXHIBIT 99.2

WebMD CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data, unaudited)
                                   
Three Months Ended Years Ended


December 31, December 31, December 31, December 31,
2002 (b) 2001 (b) 2002 (b) 2001 (b)




Revenue (a)
  $ 241,405     $ 223,541     $ 925,877     $ 901,028  
Costs and expenses
                               
 
Cost of operations (a)
    138,132       145,951       545,142       604,201  
 
Development and engineering
    10,908       10,342       43,849       43,839  
 
Sales, marketing, general and administrative
    66,912       97,587       291,710       457,540  
 
Depreciation and amortization
    31,085       125,970       130,074       2,400,804  
 
Impairment of long-lived and other assets
                609       3,826,893  
 
Restructuring and integration charge (benefit)
          46,594       (4,690 )     266,755  
 
Gain on investments
                6,547        
 
Interest income
    5,258       3,937       19,662       30,544  
 
Interest expense
    2,920       147       8,940       1,101  
 
Other income, net
    1,521             3,844        
     
     
     
     
 
Income (loss) before income tax (benefit) provision
    (1,773 )     (199,113 )     (59,704 )     (6,669,561 )
 
Income tax (benefit) provision
    656       417       (10,002 )     2,757  
     
     
     
     
 
Net income (loss)
  $ (2,429 )   $ (199,530 )   $ (49,702 )   $ (6,672,318 )
     
     
     
     
 
Basic and diluted net income (loss) per common share
  $ (0.01 )   $ (0.62 )   $ (0.16 )   $ (19.14 )
     
     
     
     
 
Weighted-average shares outstanding used in computing basic and diluted net income (loss) per common share
    298,188       319,994       304,168       348,570  
     
     
     
     
 

(a) Effective January 1, 2002, the Company has changed its accounting as required by EITF 01-14 and has included the revenue related to reimbursement of out-of-pocket expenses as a component of both revenues and cost of operations. This reclassification resulted in an increase in previously reported revenue and cost of operations of $18,135 and $73,408 for the three and twelve months ended December 31, 2001, respectively.

(b) The Company terminated its divestiture efforts related to Porex, its Plastic Technologies segment in February 2003. Consequently, the related assets, liabilities and results of operations have been reclassified to reflect Porex as a continuing operation for all periods presented.


 

WebMD CORPORATION

CONSOLIDATED SEGMENT INFORMATION
(In thousands, except per share data, unaudited)
                                   
Three Months Ended Years Ended


December 31, December 31, December 31, December 31,
2002 (b) 2001 (b) 2002 (b) 2001 (b)




Revenue
                               
 
Transaction services (a)
  $ 116,653     $ 113,100     $ 466,810     $ 457,448  
 
Physician services
    72,568       65,500       275,306       260,209  
 
Portal services
    29,305       20,066       84,296       74,626  
 
Plastic technologies
    28,188       29,051       119,992       121,025  
 
Eliminations and other, net
    (5,309)       (4,176)       (20,527)       (12,280)  
     
     
     
     
 
    $ 241,405     $ 223,541     $ 925,877     $ 901,028  
     
     
     
     
 
Income (loss) before taxes, restructuring, non-cash and other items
                               
 
Transaction services
  $ 25,025     $ 13,609     $ 85,154     $ 41,987  
 
Physician services
    7,025       5,495       26,685       20,827  
 
Portal services
    9,053       (12,611)       5,574       (79,437)  
 
Plastic technologies
    6,735       7,304       30,006       30,809  
 
Corporate and other
    (12,531)       (16,625)       (51,272)       (94,813)  
 
Interest income
    5,258       3,937       19,662       30,544  
 
Interest expense
    (2,920)       (147)       (8,940)       (1,101)  
     
     
     
     
 
    $ 37,645     $ 962     $ 106,869     $ (51,184)  
     
     
     
     
 
 
Basic and diluted income (loss) per common share before taxes, restructuring, non-cash and other items (c)
  $ 0.13     $ 0.00     $ 0.35     $ (0.15)  
     
     
     
     
 
 
Taxes, restructuring, non-cash and other items
                               
 
Depreciation and amortization
  $ (31,085)     $ (125,970)     $ (130,074)     $ (2,400,804)  
 
Amortization of prepaid content and services (included in cost of operations)
    (2,588)       (1,531)       (4,765)       (1,531)  
 
Amortization of prepaid content and services (included in sales, marketing, general and administrative)
    (3,560)       (17,713)       (20,941)       (43,943)  
 
Non-cash stock compensation (included in sales, marketing, general and administrative)
    (3,706)       (8,267)       (25,265)       (78,451)  
 
Impairment of long-lived and other assets
                (609)       (3,826,893)  
 
Restructuring and integration (charge) benefit
          (46,594)       4,690       (266,755)  
 
Income tax benefit (provision)
    (656)       (417)       10,002       (2,757)  
 
Other income, net
    1,521             3,844        
 
Gain on investments
                6,547        
     
     
     
     
 
Net income (loss)
  $ (2,429)     $ (199,530)     $ (49,702)     $ (6,672,318)  
     
     
     
     
 

(a) Effective January 1, 2002, the Company has changed its accounting as required by EITF 01-14 and has included the revenue related to reimbursement of out-of-pocket expenses as a component of both revenues and cost of operations. This reclassification resulted in an increase in previously reported revenue and cost of operations of $18,135 and $73,408 for the three and twelve months ended December 31, 2001, respectively.

(b) The Company terminated its divestiture efforts related to Porex, its Plastic Technologies segment in February 2003. Consequently, the related assets, liabilities and results of operations have been reclassified to reflect Porex as a continuing operation for all periods presented.

(c) Basic and diluted income (loss) per common share before taxes, restructuring, non-cash and other items is based on the weighted average shares outstanding used in computing basic and diluted net income (loss) per common share.


 

WebMD CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
                   
December 31, December 31,
2002 (a) 2001 (a)


Assets
               
Cash and cash equivalents
  $ 179,541     $ 286,273  
Short-term investments
    10,888       100,249  
Accounts receivable, net
    170,467       166,582  
Inventory
    18,804       19,185  
Current portion of prepaid content and distribution services
    25,406       28,818  
Other current assets
    26,197       16,852  
     
     
 
 
Total current assets
    431,303       617,959  
Marketable debt securities
    449,289       3,062  
Marketable equity securities
    7,427       15,707  
Property and equipment, net
    94,737       94,208  
Prepaid content and distribution services
    48,532       71,579  
Goodwill, net
    629,055       587,254  
Intangible assets, net
    79,536       188,524  
Other assets
    26,369       23,161  
     
     
 
    $ 1,766,248     $ 1,601,454  
     
     
 
Liabilities and Stockholders’ Equity
               
Accounts payable
  $ 11,494     $ 19,315  
Accrued expenses
    212,600       241,706  
Deferred revenue
    81,179       65,861  
Current portion of long-term debt
    6,546       209  
     
     
 
 
Total current liabilities
    311,819       327,091  
Convertible subordinated notes
    300,000        
Long-term debt
    119       7,624  
Other long-term liabilities
    509       1,227  
Series B convertible redeemable preferred stock
          10,000  
Stockholders’ Equity
    1,153,801       1,255,512  
     
     
 
    $ 1,766,248     $ 1,601,454  
     
     
 

(a) The Company terminated its divestiture efforts related to Porex, its Plastic Technologies segment in February 2003. Consequently, the related assets, liabilities and results of operations have been reclassified to reflect Porex as a continuing operation for all periods presented.