EX-99.3 4 g02852exv99w3.htm EX-99.3 FINANCIAL GUIDANCE SUMMARY ACCOMPANYING EXHIBIT 99.1 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
  $ 1,430     $ 1,450       23 %     25 %     25 %     27 %
 
                                           
 
                                               
Earnings before interest, taxes, non-cash and other items (“Adjusted EBITDA”)(a)
  $ 251     $ 264       21 %     26 %     25 %     28 %
 
                                           
 
                                               
Interest income, net
    (0.4 )     (0.7 )                                
Depreciation and amortization
    80.2       81.9       23 %     24 %     26 %     27 %
Non-cash stock-based compensation
    48.2       49.2       26 %     27 %     26 %     21 %
Non-cash advertising
    7.4       7.6       22 %     16 %     23 %     39 %
Income tax provision
    22.3       23.3       20 %     24 %     26 %     30 %
Legal expense
    0.8       0.8                                  
Advisory expenses
    4.1       4.1                                  
Minority interest in WebMD Health Corp., net of tax
    (0.6 )     (0.2 )                                
 
                                           
Net income
  $ 89.0     $ 98.0       18 %     25 %     24 %     33 %
 
                                           
 
                                               
Adjusted EBITDA per diluted share
  $ 0.84     $ 0.88                                  
 
                                           
 
                                               
Net income per diluted share
  $ 0.30     $ 0.33                                  
 
                                           
 
(a)   See Annex A — Explanation of Non-GAAP Financial Measures
Operating Segments
Revenue:
* Emdeon Business Services — Approximately 57% of consolidated revenue in Q3 decreasing to 56% in Q4.
* Emdeon Practice Services — Approximately 22% of consolidated revenue in Q3 decreasing to 21% in Q4.
* WebMD — Approximately 18% of consolidated revenue in Q3 increasing to 19% in Q4.
* Porex — Approximately 6% of consolidated revenue for the remainder of the year.
* Inter-segment eliminations — Approximately 2.5% of consolidated revenue.
Adjusted EBITDA:
* Emdeon Business Services — Approximately 22% of segment revenue for the remainder of the year.
* Emdeon Practice Services — Approximately 15% of segment revenue for the remainder of the year.
* WebMD — Approximately 21% of segment revenue in Q3 increasing to 26% in Q4.
* Porex — Approximately 27-28% of segment revenue for the remainder of the year.
* Corporate — Approximately 3.2% of consolidated revenue.
Other Assumptions
* The 2006 Guidance includes expenses for the first six months of 2006, but does not reflect any projected expenses related to either the on-going Department of Justice Investigation or advisory expense associated with the evaluation of strategic alternatives for the Emdeon Business Services and Emdeon Practice Services segments.
* 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.
* Additional details on WebMD’s guidance can be found in the press release issued by WebMD on August 3, 2006.