EX-99.2 3 g01295exv99w2.htm EX-99.2 FINANCIAL TABLES EX-99.2 FINANCIAL TABLES
 

Exhibit 99.2
EMDEON CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data, unaudited)
                 
    Three Months Ended  
    March 31,  
    2006     2005  
Revenue
  $ 339,119     $ 303,934  
 
               
Costs and expenses:
               
Cost of operations
    195,267       172,163  
Development and engineering
    14,914       14,640  
Sales, marketing, general and administrative
    88,832       82,137  
Depreciation and amortization
    18,928       16,504  
Legal expense
    542       4,160  
Loss on investments
          3,832  
Interest income
    4,419       4,321  
Interest expense
    4,691       4,781  
 
           
Income before income tax provision and minority interest
    20,364       10,038  
Income tax provision
    4,562       189  
Minority interest in WebMD Health Corp., net of tax
    (629 )      
 
           
Net income
  $ 16,431     $ 9,849  
 
           
 
               
Net income per common share:
               
Basic and diluted
  $ 0.06     $ 0.03  
 
           
 
               
Weighted-average shares outstanding used in computing net income per common share:
               
Basic
    287,195       325,334  
 
           
Diluted
    295,492       335,689  
 
           

 


 

EMDEON CORPORATION
CONSOLIDATED SEGMENT INFORMATION
(In thousands, except per share data, unaudited)
                 
    Three Months Ended  
    March 31,  
    2006     2005  
Revenues
               
Emdeon Business Services
  $ 201,154     $ 185,733  
Emdeon Practice Services
    75,706       73,018  
WebMD
    50,051       33,575  
Porex
    20,587       19,856  
Inter-segment eliminations
    (8,379 )     (8,248 )
 
           
 
  $ 339,119     $ 303,934  
 
           
 
               
Earnings before interest, taxes, non-cash and other items (“Adjusted EBITDA”)
               
Emdeon Business Services
  $ 43,193     $ 38,253  
Emdeon Practice Services
    10,173       4,397  
WebMD (a)
    6,527       3,230  
Porex
    5,554       5,397  
Corporate (a)
    (11,274 )     (12,005 )
 
           
 
  $ 54,173     $ 39,272  
 
           
 
               
Adjusted EBITDA per basic common share (b)
  $ 0.19     $ 0.12  
 
           
 
               
Adjusted EBITDA per diluted common share (b)
  $ 0.18     $ 0.12  
 
           
 
               
Interest, taxes, non-cash and other items (c)
               
Depreciation and amortization
  $ (18,928 )   $ (16,504 )
Amortization of non-cash advertising
    (1,605 )     (2,627 )
Non-cash stock-based compensation (d)
    (12,462 )     (1,651 )
Legal expense
    (542 )     (4,160 )
Loss on investments
          (3,832 )
Interest income
    4,419       4,321  
Interest expense
    (4,691 )     (4,781 )
Minority interest in WebMD Health Corp., net of tax
    629        
Income tax provision
    (4,562 )     (189 )
 
           
Net income
  $ 16,431     $ 9,849  
 
           
 
               
Net income per common share:
               
Basic and diluted
  $ 0.06     $ 0.03  
 
           
 
Weighted-average shares outstanding used in computing net income per common share:
               
Basic
    287,195       325,334  
 
           
Diluted
    295,492       335,689  
 
           
 
(a)   Adjusted EBITDA during prior periods, for the Corporate and WebMD segments, has been reclassified to conform to the current period presentation.
 
(b)   Adjusted EBITDA per basic and diluted common share is based on the weighted-average shares outstanding used in computing net income per common share (basic and diluted).
 
(c)   Reconciliation of Adjusted EBITDA to net income.
 
(d)   Reflects the adoption of SFAS 123R effective January 1, 2006.

 


 

EMDEON CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
                 
    March 31,     December 31,  
    2006     2005  
    (Unaudited)          
Assets
               
Cash and cash equivalents
  $ 137,145     $ 159,510  
Short-term investments
    239,653       267,387  
Accounts receivable, net
    236,057       233,070  
Inventory
    13,852       14,251  
Prepaid expenses and other current assets
    33,605       34,615  
 
           
Total current assets
    660,312       708,833  
 
               
Marketable equity securities
    4,265       4,481  
Property and equipment, net
    120,791       116,032  
Goodwill
    1,087,731       1,075,549  
Intangible assets, net
    240,095       240,510  
Other assets
    49,116       50,278  
 
           
Total Assets
  $ 2,162,310     $ 2,195,683  
 
           
 
               
Liabilities and Stockholders’ Equity
               
Accounts payable
  $ 10,525     $ 11,611  
Accrued expenses
    172,179       186,381  
Deferred revenue
    125,705       115,840  
 
           
Total current liabilities
    308,409       313,832  
 
               
Convertible notes
    650,000       650,000  
Other long-term liabilities
    15,372       15,353  
 
               
Minority interest in WebMD Health Corp.
    48,005       43,229  
 
               
Convertible redeemable exchangeable preferred stock
    98,591       98,533  
 
               
Stockholders’ equity
    1,041,933       1,074,736  
 
               
 
           
Total Liabilities and Stockholders’ Equity
  $ 2,162,310     $ 2,195,683  
 
           

 


 

EMDEON CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
                 
    Three Months Ended  
    March 31,  
    2006     2005  
Cash flows from operating activities:
               
Net income
  $ 16,431     $ 9,849  
Adjustments to reconcile net income to net cash provided by operating activities:
               
Depreciation and amortization
    18,928       16,504  
Minority interest in WebMD Health Corp., net of tax
    (629 )      
Amortization of debt issuance costs
    728       726  
Non-cash advertising
    1,605       2,627  
Non-cash stock-based compensation
    12,462       1,651  
Bad debt expense
    1,050       2,283  
Loss on investments
          3,832  
Reversal of income tax valuation allowance applied to goodwill
    2,157        
Changes in operating assets and liabilities:
               
Accounts receivable
    (2,245 )     (14,122 )
Inventory
    446       253  
Prepaid expenses and other, net
    (710 )     2,812  
Accounts payable
    (1,133 )     (8,631 )
Accrued expenses and other long-term liabilities
    (9,886 )     (106 )
Deferred revenue
    7,557       5,279  
 
           
Net cash provided by operating activities
    46,761       22,957  
 
               
Cash flows from investing activities:
               
Proceeds from maturities and sales of available-for-sale securities
    166,228       45,846  
Purchases of available-for-sale securities
    (137,815 )     (2,550 )
Purchases of property and equipment
    (14,168 )     (11,892 )
Proceeds received from sale of property and equipment
          400  
Cash paid in business combinations, net of cash acquired
    (27,328 )     (70,775 )
 
           
Net cash used in investing activities
    (13,083 )     (38,971 )
 
               
Cash flows from financing activities:
               
Proceeds from issuance of common stock
    10,565       13,170  
Purchases of treasury stock
    (66,633 )      
Payments of notes payable and other
    (94 )     (63 )
 
           
Net cash (used in) provided by financing activities
    (56,162 )     13,107  
 
               
Effect of exchange rates on cash
    119       (358 )
 
           
 
               
Net decrease in cash and cash equivalents
    (22,365 )     (3,265 )
Cash and cash equivalents at beginning of period
    159,510       46,019  
 
           
Cash and cash equivalents at end of period
  $ 137,145     $ 42,754