EX-99.3 4 g01295exv99w3.htm EX-99.3 FINANCIAL GUIDANCE SUMMARY EX-99.3 FINANCIAL GUIDANCE SUMMARY
 

Exhibit 99.3
2006 Consolidated Financial Guidance Summary
(in millions, except per share amounts)
                                                 
                    Quarterly Mix  
    Range     Q1     Q2     Q3     Q4  
 
                                                
Revenue
   $ 1,380.0     $ 1,430.0       24%       25%       25%       26%
 
                                            
 
                                                
Earnings before interest, taxes, non-cash and other items (“Adjusted EBITDA”)
   $ 225.0     $ 255.0       23%       24%       25%       28%  
 
                                            
 
                                                
Interest expense, net
     3.0       4.0                                  
Depreciation and amortization
     75.5       80.1       24%       24%       26%       26%  
Non-cash stock-based compensation
     48.0       50.0       25%       27%       27%       21%  
Amortization of non-cash advertising
     7.3       7.5       22%       24%       20%       34%  
Income tax provision
     21.0       22.6       21%       21%       26%       32%  
Legal expense
     0.5       0.5                                  
Minority interest in WebMD Health Corp., net of tax
     (0.3 )     0.3                                  
 
                                            
Net income
   $ 70.0     $ 90.0       21%       23%       23%       33%  
 
                                            
 
                                                
Adjusted EBITDA per diluted share
   $ 0.75     $ 0.85                                  
 
                                            
 
                                                
Net income per diluted share
   $ 0.23     $ 0.30                                  
 
                                            
Operating Segments
Revenue:
  *   Emdeon Business Services — Approximately 59% of consolidated revenue in Q2 decreasing to 57% in Q3 and 56% by Q4.
 
  *   Emdeon Practice Services — Approximately 22% of consolidated revenue in Q2 increasing to 23% in Q3 and Q4.
 
  *   WebMD — Approximately 15% of consolidated revenue in Q2 increasing to approximately 18% by Q4.
 
  *   Porex — Approximately 6% of consolidated revenue throughout the year.
 
  *   Eliminations — Approximately 2.5% of consolidated revenue.
Adjusted EBITDA:
  *   Emdeon Business Services — Approximately 21% of segment revenue throughout 2006.
 
  *   Emdeon Practice Services — Approximately 12% of segment revenue in Q2, improving to 14% by Q4.
 
  *   WebMD — Approximately 16% of segment revenue in Q2, increasing to about 29% in Q4.
 
  *   Porex — Approximately 27% of segment revenue throughout the year, slightly higher margins in the seasonally stronger Q2.
 
  *   Corporate — Approximately 3.3% of consolidated revenue.
Other Assumptions
  *   The 2006 Guidance includes actual expense for Q1 2006, but does not reflect any projected expenses related to the on-going Department of Justice Investigation.
 
  *   Adjusted EBITDA per diluted share and net income per diluted share are both calculated on an assumed share count of approximately 299 million.
 
  *   Non-cash stock-based compensation expense considers the January 1, 2006 adoption of SFAS 123R.