EX-99.3 5 g81238exv99w3.htm EX-99.3 QUARTERLY INFORMATION FOR 2002 AND 2001 EX-99.3 QUARTERLY INFORMATION FOR 2002 AND 2001
 

EXHIBIT 99.3

WebMD CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data, unaudited)
                                           
Three Months Ended Year Ended
March 31, June 30, September 30, December 31, December 31,
2002 2002 2002 2002 2002
Revenue
  $ 225,873     $ 227,644     $ 230,955     $ 241,405     $ 925,877  
Costs and expenses:
                                       
 
Cost of operations
    138,531       135,648       132,831       138,132       545,142  
 
Development and engineering
    10,868       11,113       10,960       10,908       43,849  
 
Sales, marketing, general and administrative
    79,366       76,511       68,921       66,912       291,710  
 
Depreciation and amortization
    32,759       33,033       33,197       31,085       130,074  
 
Impairment of long-lived and other assets
    –       609       –       –       609  
 
Restructuring and integration (benefit) charge
    (3,750 )     1,160       (2,100 )     –       (4,690 )
 
Gain on investments
    –       5,866       681       –       6,547  
 
Interest income
    3,140       6,022       5,242       5,258       19,662  
 
Interest expense
    141       2,954       2,925       2,920       8,940  
 
Other income, net
    –       –       2,323       1,521       3,844  
     
     
     
     
     
 
Loss before income tax (benefit) provision
    (28,902 )     (21,496 )     (7,533 )     (1,773 )     (59,704 )
 
Income tax (benefit) provision
    700       713       (12,071 )     656       (10,002 )
     
     
     
     
     
 
Net income (loss)
  $ (29,602 )   $ (22,209 )   $ 4,538     $ (2,429 )   $ (49,702 )
     
     
     
     
     
 
Basic net income (loss) per common share
  $ (0.09 )   $ (0.07 )   $ 0.02     $ (0.01 )   $ (0.16 )
     
     
     
     
     
 
Diluted net income (loss) per common share
  $ (0.09 )   $ (0.07 )   $ 0.01     $ (0.01 )   $ (0.16 )
     
     
     
     
     
 
Weighted-average shares outstanding used in computing net income (loss) per common share
                                       
 
Basic
    311,668       309,462       297,352       298,188       304,168  
     
     
     
     
     
 
 
Diluted
    311,668       309,462       308,537       298,188       304,168  
     
     
     
     
     
 

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 STATEMENTS OF OPERATIONS
(In thousands, except per share data, unaudited)
                                           
Three Months Ended Year Ended
March 31, June 30, September 30, December 31, December 31,
2001 2001 2001 2001 2001
Revenue
  $ 233,144     $ 228,766     $ 215,577     $ 223,541     $ 901,028  
Costs and expenses:
                                       
 
Cost of operations
    159,675       153,538       145,037       145,951       604,201  
 
Development and engineering
    13,337       10,132       10,028       10,342       43,839  
 
Sales, marketing, general and administrative
    134,933       119,938       105,082       97,587       457,540  
 
Depreciation and amortization
    762,618       757,918       754,298       125,970       2,400,804  
 
Impairment of long-lived and other assets
    –       –       3,826,893       –       3,826,893  
 
Restructuring and integration charge
    208,683       11,211       267       46,594       266,755  
 
Interest income
    11,261       8,645       6,701       3,937       30,544  
 
Interest expense
    277       447       230       147       1,101  
     
     
     
     
     
 
Loss before income tax provision
    (1,035,118 )     (815,773 )     (4,619,557 )     (199,113 )     (6,669,561 )
 
Income tax provision
    641       1,010       689       417       2,757  
     
     
     
     
     
 
Net loss
  $ (1,035,759 )   $ (816,783 )   $ (4,620,246 )   $ (199,530 )   $ (6,672,318 )
     
     
     
     
     
 
Basic net loss per common share
  $ (2.90 )   $ (2.28 )   $ (12.85 )   $ (0.62 )   $ (19.14 )
     
     
     
     
     
 
Diluted net loss per common share
  $ (2.90 )   $ (2.28 )   $ (12.85 )   $ (0.62 )   $ (19.14 )
     
     
     
     
     
 
Weighted-average shares outstanding used in computing net loss per common share
                                       
 
Basic
    356,806       357,878       359,600       319,994       348,570  
             
     
     
     
 
     
                                 
 
Diluted
    356,806       357,878       359,600       319,994       348,570  
     
     
     
     
     
 

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.

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, within the Transaction Services segment, for all 2001 periods.

 

WebMD CORPORATION

CONSOLIDATED SEGMENT INFORMATION
(In thousands, except per share data, unaudited)
                                           
Three Months Ended Year Ended
March 31, June 30, September 30, December 31, December 31,
2002 2002 2002 2002 2002
Revenue
                                       
 
Transaction services
  $ 117,927     $ 117,204     $ 115,026     $ 116,653     $ 466,810  
 
Physician services
    66,089       66,068       70,581       72,568       275,306  
 
Portal services
    17,134       18,006       19,851       29,305       84,296  
 
Plastic technologies
    29,541       31,509       30,754       28,188       119,992  
 
Eliminations and other, net
    (4,818 )     (5,143 )     (5,257 )     (5,309 )     (20,527 )
     
     
     
     
     
 
    $ 225,873     $ 227,644     $ 230,955     $ 241,405     $ 925,877  
     
     
     
     
     
 
Income (loss) before taxes, restructuring, non-cash and other items
                                       
 
Transaction services
  $ 17,538     $ 18,264     $ 24,327     $ 25,025     $ 85,154  
 
Physician services
    6,252       6,234       7,174       7,025       26,685  
 
Portal services
    (4,837 )     (2,219 )     3,577       9,053       5,574  
 
Plastic technologies
    7,598       8,197       7,476       6,735       30,006  
 
Corporate and other
    (14,607 )     (12,641 )     (11,493 )     (12,531 )     (51,272 )
 
Interest income
    3,140       6,022       5,242       5,258       19,662  
 
Interest expense
    (141 )     (2,954 )     (2,925 )     (2,920 )     (8,940 )
     
     
     
     
     
 
    $ 14,943     $ 20,903     $ 33,378     $ 37,645     $ 106,869  
     
     
     
     
     
 
 
Basic and diluted income per common share before taxes, restructuring, non-cash and other items
  $ 0.05     $ 0.07     $ 0.11     $ 0.13     $ 0.35  
     
     
     
     
     
 
Taxes, restructuring, non-cash and other items
                                       
 
Depreciation and amortization
  $ (32,759 )   $ (33,033 )   $ (33,197 )   $ (31,085 )   $ (130,074 )
 
Non-cash content and distribution services and stock compensation
    (14,836 )     (13,463 )     (12,818 )     (9,854 )     (50,971 )
 
Impairment of long-lived and other assets
    –       (609 )     –       –       (609 )
 
Restructuring and integration benefit (charge)
    3,750       (1,160 )     2,100       –       4,690  
 
Income tax benefit (provision)
    (700 )     (713 )     12,071       (656 )     10,002  
 
Other income, net
    –       –       2,323       1,521       3,844  
 
Gain on investments
    –       5,866       681       –       6,547  
     
     
     
     
     
 
Net income (loss)
  $ (29,602 )   $ (22,209 )   $ 4,538     $ (2,429 )   $ (49,702 )
     
     
     
     
     
 

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.

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

CONSOLIDATED SEGMENT INFORMATION
(In thousands, except per share data, unaudited)
                                           
Three Months Ended Year Ended
March 31, June 30, September 30, December 31, December 31,
2001 2001 2001 2001 2001
Revenue
                                       
 
Transaction services
  $ 117,095     $ 116,558     $ 110,695     $ 113,100     $ 457,448  
 
Physician services
    66,125       66,471       62,113       65,500       260,209  
 
Portal services
    21,607       17,045       15,908       20,066       74,626  
 
Plastic technologies
    30,203       31,322       30,449       29,051       121,025  
 
Eliminations and other, net
    (1,886 )     (2,630 )     (3,588 )     (4,176 )     (12,280 )
     
     
     
     
     
 
    $ 233,144     $ 228,766     $ 215,577     $ 223,541     $ 901,028  
     
     
     
     
     
 
Income (loss) before taxes, restructuring, non-cash and other items
                                       
 
Transaction services
  $ 8,877     $ 8,886     $ 10,615     $ 13,609     $ 41,987  
 
Physician services
    5,257       6,638       3,437       5,495       20,827  
 
Portal services
    (27,122 )     (21,140 )     (18,564 )     (12,611 )     (79,437 )
 
Plastic technologies
    6,982       8,760       7,763       7,304       30,809  
 
Corporate and other
    (30,609 )     (26,240 )     (21,339 )     (16,625 )     (94,813 )
 
Interest income
    11,261       8,645       6,701       3,937       30,544  
 
Interest expense
    (277 )     (447 )     (230 )     (147 )     (1,101 )
     
     
     
     
     
 
    $ (25,631 )   $ (14,898 )   $ (11,617 )   $ 962     $ (51,184 )
     
     
     
     
     
 
 
Basic and diluted income (loss) per common share before taxes, restructuring, non-cash and other items
  $ (0.07 )   $ (0.04 )   $ (0.03 )   $ 0.00     $ (0.15 )
     
     
     
     
     
 
Taxes, restructuring, non-cash and other items
                                       
 
Depreciation and amortization
  $ (762,618 )   $ (757,918 )   $ (754,298 )   $ (125,970 )   $ (2,400,804 )
 
Non-cash content and distribution services and stock compensation
    (38,186 )     (31,746 )     (26,482 )     (27,511 )     (123,925 )
 
Impairment of long-lived and other assets
    –       –       (3,826,893 )     –       (3,826,893 )
 
Restructuring and integration charge
    (208,683 )     (11,211 )     (267 )     (46,594 )     (266,755 )
 
Income tax provision
    (641 )     (1,010 )     (689 )     (417 )     (2,757 )
     
     
     
     
     
 
Net loss
  $ (1,035,759 )   $ (816,783 )   $ (4,620,246 )   $ (199,530 )   $ (6,672,318 )
     
     
     
     
     
 

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.

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, within the Transaction Services segment, for all 2001 periods.

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 BALANCE SHEETS
(In thousands, unaudited)
                                   
March 31, June 30, September 30, December 31,
2002 2002 2002 2002
Assets
                               
 
Cash and cash equivalents
  $ 226,170     $ 174,234     $ 165,847     $ 179,541  
Short-term investments
    21,233       7,336       11,880       10,888  
Accounts receivable, net
    168,273       164,490       163,394       170,467  
Inventory
    21,079       20,222       18,997       18,804  
Federal income tax receivable
    –       –       12,887       –  
Current portion of prepaid content and distribution services
    27,108       26,453       25,799       25,406  
Other current assets
    18,190       17,651       22,764       26,197  
     
     
     
     
 
 
Total current assets
    482,053       410,386       421,568       431,303  
 
Marketable debt securities
    157,966       449,450       450,725       449,289  
Marketable equity securities
    17,603       15,819       14,025       7,427  
Property and equipment, net
    92,928       96,305       97,333       94,737  
Prepaid content and distribution services
    67,705       61,473       55,241       48,532  
Goodwill, net
    605,195       603,112       607,059       629,055  
Intangible assets, net
    145,856       124,070       99,866       79,536  
Other assets
    20,888       27,640       27,621       26,369  
     
     
     
     
 
    $ 1,590,194     $ 1,788,255     $ 1,773,438     $ 1,766,248  
     
     
     
     
 
Liabilities and Stockholders’ Equity
                               
 
Accounts payable
  $ 15,981     $ 12,164     $ 13,625     $ 11,494  
Accrued expenses
    251,845       244,460       231,840       212,600  
Deferred revenue
    74,332       77,118       73,702       81,179  
Current portion of long-term debt
    6,732       6,545       6,545       6,546  
     
     
     
     
 
 
Total current liabilities
    348,890       340,287       325,712       311,819  
 
Convertible subordinated notes
    –       300,000       300,000       300,000  
Long-term debt
    1,023       126       123       119  
Other long-term liabilities
    662       541       516       509  
 
Stockholders’ equity
    1,239,619       1,147,301       1,147,087       1,153,801  
     
     
     
     
 
    $ 1,590,194     $ 1,788,255     $ 1,773,438     $ 1,766,248  
     
     
     
     
 

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

CONDENSED BALANCE SHEETS
(In thousands, unaudited)
                                   
March 31, June 30, September 30, December 31,
2001 2001 2001 2001
Assets
                               
 
Cash and cash equivalents
  $ 577,669     $ 516,726     $ 520,406     $ 286,273  
Short-term investments
    82,415       97,403       97,378       100,249  
Accounts receivable, net
    197,507       200,294       172,210       166,582  
Inventory
    17,142       17,389       18,104       19,185  
Current portion of prepaid content and distribution services
    7,345       10,493       29,486       28,818  
Other current assets
    25,116       24,301       17,057       16,852  
     
     
     
     
 
 
Total current assets
    907,194       866,606       854,641       617,959  
 
Marketable debt securities
    3,081       3,075       3,068       3,062  
Marketable equity securities
    21,028       8,560       7,716       15,707  
Property and equipment, net
    123,972       123,281       88,776       94,208  
Prepaid content and distribution services
    114,378       118,240       78,101       71,579  
Goodwill, net
    5,793,620       5,089,348       664,252       587,254  
Intangible assets, net
    363,882       321,456       217,487       188,524  
Other assets
    49,702       39,598       33,122       23,161  
     
     
     
     
 
    $ 7,376,857     $ 6,570,164     $ 1,947,163     $ 1,601,454  
     
     
     
     
 
Liabilities and Stockholders’ Equity
                               
 
Accounts payable
  $ 22,067     $ 18,043     $ 18,992     $ 19,315  
Accrued expenses
    291,453       268,522       249,085       241,706  
Deferred revenue
    48,962       51,473       57,099       65,861  
Current portion of long-term debt
    410       322       258       209  
     
     
     
     
 
 
Total current liabilities
    362,892       338,360       325,434       327,091  
Long-term debt
    7,781       7,722       7,671       7,624  
Other long-term liabilities
    4,086       1,912       1,586       1,227  
Series B convertible redeemable preferred stock
    10,000       10,000       10,000       10,000  
 
Stockholders’ equity
    6,992,098       6,212,170       1,602,472       1,255,512  
     
     
     
     
 
    $ 7,376,857     $ 6,570,164     $ 1,947,163     $ 1,601,454  
     
     
     
     
 

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.