EX-99.2 3 g07139exv99w2.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)
                 
    Preliminary  
    Three Months Ended  
    March 31,  
    2007     2006  
Revenue:
                
Services
   $ 97,943     $ 252,745  
Products
     24,082       24,449  
 
            
Total revenue
     122,025       277,194  
 
                
Cost of operations:
                
Services
     44,514       156,359  
Products
     9,915       10,815  
 
            
Total cost of operations
     54,429       167,174  
 
                
Development and engineering
     4,574       8,864  
Sales, marketing, general and administrative
     60,399       70,180  
Depreciation and amortization
     10,727       16,554  
Legal expense
     320       542  
Interest income
     9,674       4,418  
Interest expense
     4,717       4,691  
Transition services income
     2,456       —  
Other income
     746       —  
 
            
(Loss) income from continuing operations before income tax provision
     (265 )     13,607  
Income tax provision
     648       3,372  
Minority interest in WHC income (loss)
     115       (629 )
Equity in earnings of EBS Master LLC
     7,099       —  
 
            
Income from continuing operations
     6,071       10,864  
(Loss) income from discontinued operations, net of tax
     (27 )     5,567  
 
            
Net income
   $ 6,044     $ 16,431  
 
            
 
                
Basic income (loss) per common share:
                
Income from continuing operations
   $ 0.03     $ 0.04  
(Loss) income from discontinued operations
     (0.00 )     0.02  
 
            
Net income
   $ 0.03     $ 0.06  
 
            
 
                
Diluted income (loss) per common share:
                
Income from continuing operations
   $ 0.03     $ 0.04  
(Loss) income from discontinued operations
     (0.00 )     0.02  
 
            
Net income
   $ 0.03     $ 0.06  
 
            
 
                
Weighted-average shares outstanding used in computing income (loss) per common share:
                
Basic
     176,011       287,195  
 
            
Diluted
     186,355       295,492  
 
            

 

 

EMDEON CORPORATION
CONSOLIDATED SEGMENT INFORMATION
(In thousands, except per share data, unaudited)
                 
    Preliminary
Three Months Ended		  
    March 31,  
    2007     2006  
Revenue
                
Emdeon Business Services
   $ —     $ 182,851  
WebMD
     72,962       50,051  
ViPS
     26,659       23,836  
Porex
     22,709       20,587  
Inter-segment eliminations
     (305 )     (131 )
 
            
 
   $ 122,025     $ 277,194  
 
            
 
                
Earnings before interest, taxes, non-cash and other items (“Adjusted EBITDA”)
               
Emdeon Business Services
   $ —     $ 38,207  
WebMD
     12,607       6,527  
ViPS
     4,840       5,158  
Porex
     6,474       5,554  
Corporate
     (6,731 )     (11,138 )
 
            
 
   $ 17,190     $ 44,308  
 
                
Adjusted EBITDA per diluted common share (a)
   $ 0.09     $ 0.15  
 
            
 
                
Interest, taxes, non-cash and other items (b)
               
Depreciation and amortization
   $ (10,727 )   $ (16,554 )
Non-cash stock-based compensation
     (9,791 )     (11,727 )
Non-cash advertising
     (2,320 )     (1,605 )
Legal expense
     (320 )     (542 )
Interest income
     9,674       4,418  
Interest expense
     (4,717 )     (4,691 )
Income tax provision
     (648 )     (3,372 )
Minority interest in WHC (income) loss
     (115 )     629  
Equity in earnings of EBS Master LLC
     7,099       —  
Other income
     746       —  
 
            
Income from continuing operations
     6,071       10,864  
(Loss) income from discontinued operations, net of tax
     (27 )     5,567  
 
            
Net income
   $ 6,044     $ 16,431  
 
            
 
                
Basic income (loss) per common share:
                
Income from continuing operations
   $ 0.03     $ 0.04  
(Loss) income from discontinued operations
     (0.00 )     0.02  
 
            
Net income
   $ 0.03     $ 0.06  
 
            
 
                
Diluted income (loss) per common share:
                
Income from continuing operations
   $ 0.03     $ 0.04  
(Loss) income from discontinued operations
     (0.00 )     0.02  
 
            
Net income
   $ 0.03     $ 0.06  
 
            
 
                
Weighted-average shares outstanding used in computing income (loss) per common share:
                
Basic
     176,011       287,195  
 
            
Diluted
     186,355       295,492  
 
            
 
(a)   Adjusted EBITDA per diluted common share is based on the weighted-average shares outstanding used in computing diluted income per common share.
 
(b)   Reconciliation of Adjusted EBITDA to net income (see Annex A — Explanation of Non-GAAP Financial Measures).

 

 

EMDEON CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
                 
    Preliminary  
    March 31, 2007     December 31, 2006  
Assets
                
Cash and cash equivalents
   $ 668,558     $ 614,691  
Short-term investments
     32,386       34,140  
Accounts receivable, net
     120,999       121,608  
Inventory
     10,478       9,922  
Due from EBS Master LLC
     325       30,716  
Prepaid expenses and other current assets
     53,452       31,871  
 
            
Total current assets
     886,198       842,948  
 
                
Marketable equity securities
     2,543       2,633  
Property and equipment, net
     73,147       72,040  
Goodwill
     337,677       337,669  
Intangible assets, net
     123,369       129,473  
Investment in EBS Master LLC
     9,534       1,521  
Other assets
     40,033       65,659  
 
            
Total Assets
   $ 1,472,501     $ 1,451,943  
 
            
 
                
Liabilities and Stockholders’ Equity
                
Accounts payable
   $ 2,970     $ 3,996  
Accrued expenses
     49,611       113,175  
Deferred revenue
     95,117       87,438  
 
            
Total current liabilities
     147,698       204,609  
 
                
Convertible notes
     650,000       650,000  
Other long-term liabilities
     21,446       14,420  
 
                
Minority interest in WebMD Health Corp. (WHC)
     106,944       102,294  
 
                
Convertible redeemable exchangeable preferred stock
     98,826       98,768  
 
                
Stockholders’ equity
     447,587       381,852  
 
                
 
            
Total Liabilities and Stockholders’ Equity
   $ 1,472,501     $ 1,451,943  
 
            

 

 

EMDEON CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
                 
    Preliminary  
    Three Months Ended  
    March 31,  
    2007     2006  
Cash flows from operating activities:
                
Net income
   $ 6,044     $ 16,431  
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
                
Loss (income) from discontinued operations, net of tax
     27       (5,567 )
Depreciation and amortization
     10,727       16,554  
Minority interest in WHC income (loss)
     115       (629 )
Equity in earnings of EBS Master LLC
     (7,099 )     —  
Amortization of debt issuance costs
     721       728  
Non-cash advertising
     2,320       1,605  
Non-cash stock-based compensation
     9,791       11,727  
EBS working capital adjustment
     (399 )     —  
Reversal of income tax valuation allowance applied to goodwill
     250       1,669  
Changes in operating assets and liabilities:
                
Accounts receivable
     1,418       (2,666 )
Inventory
     (505 )     241  
Prepaid expenses and other, net
     324       (951 )
Accounts payable
     (1,027 )     (117 )
Accrued expenses and other long-term liabilities
     (47,684 )     (4,407 )
Deferred revenue
     7,679       10,951  
 
            
Net cash (used in) provided by continuing operations
     (17,298 )     45,569  
Net cash provided by discontinued operations
     —       1,192  
 
            
Net cash (used in) provided by operating activities
     (17,298 )     46,761  
 
                
Cash flows from investing activities:
                
Proceeds from maturities and sales of available-for-sale securities
     67,922       166,228  
Purchases of available-for-sale securities
     (65,932 )     (137,815 )
Purchases of property and equipment
     (5,627 )     (13,248 )
Cash paid in business combinations, net of cash acquired
     —       (27,328 )
Proceeds from the sale of EBS
     2,898       —  
Proceeds from advances to EBS Master LLC
     19,691       —  
Other changes in equity of discontinued operations
     —       1,588  
 
            
Net cash provided by (used in) continuing operations
     18,952       (10,575 )
Net cash used in discontinued operations
     —       (2,508 )
 
            
Net cash provided by (used in) investing activities
     18,952       (13,083 )
 
                
Cash flows from financing activities:
                
Proceeds from issuance of Emdeon and WebMD Health common stock
     63,404       10,565  
Purchases of treasury stock under repurchase program
     (11,322 )     (66,633 )
Payments of notes payable and other
     (53 )     (94 )
 
            
Net cash provided by (used in) financing activities
     52,029       (56,162 )
 
                
Effect of exchange rates on cash
     184       119  
 
            
 
                
Net increase (decrease) in cash and cash equivalents
     53,867       (22,365 )
Change in cash attributable to discontinued operations
     —       1,316  
Cash and cash equivalents at beginning of period
     614,691       155,616  
 
            
Cash and cash equivalents at end of period
   $ 668,558     $ 134,567