EX-99.2 3 g11859exv99w2.htm EX-99.2 FINANCIAL TABLES ACCOMPANYING EXHIBIT 99.1 EX-99.2 FINANCIAL TABLES ACCOMPANYING EXHIBIT 99.1
 

EXHIBIT 99.2
HLTH CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data, unaudited)
                                 
    Three Months Ended     Years Ended  
    December 31,     December 31,  
    2007     2006     2007     2006  
Revenue:
                               
Services
  $ 122,135     $ 205,743     $ 430,930     $ 998,016  
Products
    23,680       23,120       96,185       95,487  
 
                       
Total revenue
    145,815       228,863       527,115       1,093,503  
 
                               
Cost of operations:
                               
Services
    43,696       107,393       174,552       578,544  
Products
    9,302       9,163       38,003       40,502  
 
                       
Total cost of operations
    52,998       116,556       212,555       619,046  
 
                               
Development and engineering
    4,505       6,485       18,055       33,649  
Sales, marketing, general and administrative
    58,542       71,412       234,633       288,015  
Depreciation and amortization
    11,796       10,010       46,023       61,968  
Interest income
    11,397       16,889       42,035       32,339  
Interest expense
    4,610       4,697       18,519       18,779  
Gain on sale of EBS
          352,297       399       352,297  
Other (expense) income, net
    (1,804 )     1,446       3,064       (4,252 )
 
                       
Income from continuing operations before income tax (benefit) provision
    22,957       390,335       42,828       452,430  
Income tax (benefit) provision
    (20,554 )     37,193       (13,598 )     52,316  
Minority interest in WHC
    7,909       929       10,667       405  
Equity in earnings of EBS Master LLC
    5,887       763       28,566       763  
 
                       
Income from continuing operations
    41,489       352,976       74,325       400,472  
Income (loss) from discontinued operations, net of tax
    1,580       798       (54,446 )     371,445  
 
                       
Net income
  $ 43,069     $ 353,774     $ 19,879     $ 771,917  
 
                       
 
                               
Basic income (loss) per common share:
                               
Income from continuing operations
  $ 0.23     $ 1.38     $ 0.42     $ 1.44  
Income (loss) from discontinued operations
    0.01       0.00       (0.31 )     1.33  
 
                       
Net income
  $ 0.24     $ 1.38     $ 0.11     $ 2.77  
 
                       
 
                               
Diluted income (loss) per common share:
                               
Income from continuing operations
  $ 0.19     $ 1.16     $ 0.38     $ 1.26  
Income (loss) from discontinued operations
    0.01       0.00       (0.26 )     1.12  
 
                       
Net income
  $ 0.20     $ 1.16     $ 0.12     $ 2.38  
 
                       
 
                               
Weighted-average shares outstanding used in computing income (loss) per common share:
                               
Basic
    181,280       256,688       179,330       279,234  
 
                       
Diluted
    231,609       308,295       211,505       331,642  
 
                       

 


 

HLTH CORPORATION
CONSOLIDATED SEGMENT INFORMATION
(In thousands, except per share data, unaudited)
                                 
    Three Months Ended     Years Ended  
    December 31,     December 31,  
    2007     2006     2007     2006  
Revenue
                               
Emdeon Business Services
  $     $ 103,116     $     $ 661,090  
WebMD
    96,642       79,385       331,954       248,776  
ViPS
    26,232       25,349       103,083       98,874  
Porex
    23,002       21,158       92,581       85,702  
Inter-segment eliminations
    (61 )     (145 )     (503 )     (939 )
 
                       
 
  $ 145,815     $ 228,863     $ 527,115     $ 1,093,503  
 
                       
 
                               
Earnings before interest, taxes, non-cash and other items (“Adjusted EBITDA”)
                               
Emdeon Business Services
  $     $ 25,392     $     $ 152,911  
WebMD
    33,072       22,409       84,697       52,686  
ViPS
    6,269       5,012       21,012       20,529  
Porex
    6,812       6,242       27,074       24,974  
Corporate
    (5,844 )     (9,781 )     (25,111 )     (43,414 )
 
                       
 
  $ 40,309     $ 49,274     $ 107,672     $ 207,686  
 
                               
Adjusted EBITDA per diluted common share (a)
  $ 0.17     $ 0.16     $ 0.51     $ 0.63  
 
                       
 
                               
Interest, taxes, non-cash and other items (b)
                               
Depreciation and amortization
  $ (11,796 )   $ (10,010 )   $ (46,023 )   $ (61,968 )
Non-cash stock-based compensation
    (6,840 )     (9,720 )     (34,703 )     (44,955 )
Non-cash advertising
    (2,775 )     (2,960 )     (5,264 )     (7,414 )
Interest income
    11,397       16,889       42,035       32,339  
Interest expense
    (4,610 )     (4,697 )     (18,519 )     (18,779 )
Income tax benefit (provision)
    20,554       (37,193 )     13,598       (52,316 )
Minority interest in WHC
    (7,909 )     (929 )     (10,667 )     (405 )
Equity in earnings of EBS Master LLC
    5,887       763       28,566       763  
Gain on sale of EBS
          352,297       399       352,297  
Other expense, net
    (2,728 )     (738 )     (2,769 )     (6,776 )
 
                       
Income from continuing operations
    41,489       352,976       74,325       400,472  
Income (loss) from discontinued operations, net of tax
    1,580       798       (54,446 )     371,445  
 
                       
Net income
  $ 43,069     $ 353,774     $ 19,879     $ 771,917  
 
                       
 
                               
Basic income (loss) per common share:
                               
Income from continuing operations
  $ 0.23     $ 1.38     $ 0.42     $ 1.44  
Income (loss) from discontinued operations
    0.01       0.00       (0.31 )     1.33  
 
                       
Net income
  $ 0.24     $ 1.38     $ 0.11     $ 2.77  
 
                       
 
                               
Diluted income (loss) per common share:
                               
Income from continuing operations
  $ 0.19     $ 1.16     $ 0.38     $ 1.26  
Income (loss) from discontinued operations
    0.01       0.00       (0.26 )     1.12  
 
                       
Net income
  $ 0.20     $ 1.16     $ 0.12     $ 2.38  
 
                       
 
                               
Weighted-average shares outstanding used in computing income (loss) per common share:
                               
Basic
    181,280       256,688       179,330       279,234  
 
                       
Diluted
    231,609       308,295       211,505       331,642  
 
                       
 
(a)   Adjusted EBITDA per diluted common share is based on the weighted-average shares outstanding used in computing diluted income (loss) per common share.
 
(b)   Reconciliation of Adjusted EBITDA to net income (see Annex A — Explanation of Non-GAAP Financial Measures).

 


 

HLTH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
                 
    December 31,  
    2007     2006  
Assets
               
Cash and cash equivalents
  $ 536,879     $ 614,691  
Short-term investments
    290,858       34,140  
Accounts receivable, net
    116,243       121,608  
Inventory
    11,772       9,922  
Due from EBS Master LLC
    1,224       30,716  
Prepaid expenses and other current assets
    74,794       31,871  
 
           
Total current assets
    1,031,770       842,948  
 
               
Marketable equity securities
    2,383       2,633  
Property and equipment, net
    74,750       72,040  
Goodwill
    331,859       337,669  
Intangible assets, net
    109,001       129,473  
Investment in EBS Master LLC
    25,261       1,521  
Other assets
    35,541       65,659  
 
           
Total Assets
  $ 1,610,565     $ 1,451,943  
 
           
 
               
Liabilities and Stockholders’ Equity
               
Accounts payable
  $ 3,280     $ 3,996  
Accrued expenses
    61,427       113,175  
Deferred revenue
    87,384       85,793  
Liabilities of discontinued operations
    55,563       1,645  
 
           
Total current liabilities
    207,654       204,609  
 
               
Convertible notes
    650,000       650,000  
Other long-term liabilities
    21,781       24,179  
 
               
Minority interest in WHC
    131,353       101,860  
 
               
Convertible redeemable exchangeable preferred stock
          98,768  
 
               
Stockholders’ equity
    599,777       372,527  
 
               
 
           
Total Liabilities and Stockholders’ Equity
  $ 1,610,565     $ 1,451,943  
 
           

 


 

HLTH CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
                 
    Years Ended  
    December 31,  
    2007     2006  
Cash flows from operating activities:
               
Net income
  $ 19,879     $ 771,917  
Adjustments to reconcile net income to net cash provided by operating activities:
               
Loss (income) from discontinued operations, net of tax
    54,446       (371,445 )
Depreciation and amortization
    46,023       61,968  
Minority interest in WHC
    10,667       405  
Equity in earnings of EBS Master LLC
    (28,566 )     (763 )
Amortization of debt issuance costs
    2,916       2,906  
Non-cash advertising
    5,264       7,414  
Non-cash stock-based compensation
    34,703       44,955  
Deferred income taxes
    (18,228 )     26,893
Gain on sale of EBS
    (399 )     (352,297 )
Changes in operating assets and liabilities:
               
Accounts receivable
    5,928       (43,807 )
Inventory
    (1,611 )     190  
Prepaid expenses and other, net
    4,559       (12,302 )
Accounts payable
    (716 )     162  
Accrued expenses and other long-term liabilities
    (42,888 )     20,621  
Deferred revenue
    1,590       15,913  
 
           
Net cash provided by continuing operations
    93,567       172,730  
Net cash (used in) provided by discontinued operations
    (18,174 )     26,290  
 
           
Net cash provided by operating activities
    75,393       199,020  
 
               
Cash flows from investing activities:
               
Proceeds from maturities and sales of available-for-sale securities
    670,326       928,284  
Purchases of available-for-sale securities
    (927,038 )     (686,815 )
Purchases of property and equipment
    (23,694 )     (54,885 )
Cash paid in business combinations, net of cash acquired
    (100 )     (152,772 )
Proceeds from the sale of EBS, net
    2,898       1,199,872  
Proceeds from advances to EBS Master LLC
    18,792       (20,016 )
Proceeds from the sale of discontinued operations
    11,667       522,604  
Other changes in equity of discontinued operations
          28,279  
 
           
Net cash (used in) provided by continuing operations
    (247,149 )     1,764,551  
Net cash used in discontinued operations
          (26,010 )
 
           
Net cash (used in) provided by investing activities
    (247,149 )     1,738,541  
 
               
Cash flows from financing activities:
               
Proceeds from issuance of HLTH and WHC common stock
    133,033       156,078  
Tax benefit on stock-based awards
    6,601        
Purchases of treasury stock under repurchase program
    (47,102 )     (83,167 )
Purchases of treasury stock in tender offer
          (1,552,120 )
Payments of notes payable and other
    (195 )     (437 )
 
           
Net cash provided by (used in) financing activities
    92,337       (1,479,646 )
 
               
Effect of exchange rates on cash
    1,607       1,135  
 
           
 
               
Net (decrease) increase in cash and cash equivalents
    (77,812 )     459,050  
Change in cash of discontinued operations
          25  
Cash and cash equivalents at beginning of period
    614,691       155,616  
 
           
Cash and cash equivalents at end of period
  $ 536,879     $ 614,691