EX-99.1 2 g14347exv99w1.htm EX-99.1 UNAUDITED PRO FORMA EX-99.1 UNAUDITED PRO FORMA
EXHIBIT 99.1
 
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
 
     The following unaudited pro forma condensed consolidated balance sheet of HLTH Corporation (“HLTH”) presents financial information giving effect to the sale of our ViPS segment (“ViPS”). The sale has been accounted for in accordance with Statement of Financial Accounting Standards No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets.” The Unaudited Pro Forma Condensed Consolidated Balance Sheet as of March 31, 2008 presents the consolidated financial position of HLTH, giving effect to the sale as if it had occurred on March 31, 2008.
     The historical consolidated balance sheet of HLTH has been adjusted to give effect to pro forma events that are directly attributable to the sale and factually supportable. You should read this information in conjunction with:
  •   the accompanying notes to the unaudited pro forma condensed consolidated balance sheet, which describe certain estimates and assumptions made in preparing such balance sheet and in making the adjustments reflected therein;
 
  •   HLTH’s historical unaudited financial statements as of and for the three months ended March 31, 2008 included in HLTH’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2008; and
 
  •   HLTH’s historical financial statements as of and for the three years in the period ended December 31, 2007 included in the Current Report on Form 8-K filed with the SEC on June 27, 2008.
       The unaudited pro forma condensed consolidated balance sheet has been prepared for informational purposes only. The unaudited pro forma condensed consolidated balance sheet is not necessarily indicative of the financial position that actually would have been realized had the sale been completed at the date indicated. In addition, the unaudited pro forma condensed consolidated balance sheet does not purport to project the future financial position of HLTH.

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HLTH CORPORATION
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
AS OF MARCH 31, 2008
(In thousands)
             
                         
    As     Pro Forma     HLTH  
    Reported     Adjustments     Pro Forma  
ASSETS
                        
Current assets:
                        
Cash and cash equivalents
   $ 1,106,128     $ 220,000  (a)   $ 1,326,128  
Short-term investments
     309,256       —       309,256  
Accounts receivable, net
     73,861       —       73,861  
Prepaid expenses and other current assets
     27,809       (1,553 ) (c)     26,256  
Assets of discontinued operations
     266,591       (142,197 ) (b)     124,394  
 
                  
Total current assets
     1,783,645       76,250       1,859,895  
 
                        
Marketable equity securities
     2,036       —       2,036  
Property and equipment, net
     47,883       —       47,883  
Goodwill
     214,623       (3,061 ) (c)     211,562  
Intangible assets, net
     33,766               33,766  
Other assets
     59,922       (13,979 ) (c)     45,943  
TOTAL ASSETS
   $ 2,141,875     $ 59,210     $ 2,201,085  
 
                  
 
                        
LIABILITIES AND STOCKHOLDERS’ EQUITY
                        
Current liabilities:
                        
Accrued expenses
   $ 59,002     $ —     $ 59,002  
Deferred revenue
     88,114       —       88,114  
Liabilities of discontinued operations
     113,397       (30,161 ) (b)     83,236  
 
                  
Total current liabilities
     260,513       (30,161 )     230,352  
 
                        
Convertible notes
     650,000       —       650,000  
Other long-term liabilities
     21,214       —       21,214  
Minority interest in WebMD Health Corp.
     130,231       —       130,231  
Stockholders’ equity
     1,079,917       89,371  (d)     1,169,288  
 
                  
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
   $ 2,141,875     $ 59,210     $ 2,201,085  
 
                  

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NOTES TO THE UNAUDITED PRO FORMA CONDENSED
CONSOLIDATED BALANCE SHEET
     The “as reported” financial information as of March 31, 2008 has been derived from our historical financial statements included in our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2008.
      The pro forma adjustments related to the unaudited pro forma condensed consolidated balance sheet as of March 31, 2008 assume the sale took place on March 31, 2008 and are as follows:
     (a) Represents the estimated cash proceeds from the sale of $225 million, net of approximately $5 million of taxes and transaction costs incurred in connection with the sale.
     (b) Represents the elimination of the assets and liabilities of ViPS.
     (c) Represents the tax impact to HLTH’s goodwill and the increase to HLTH's deferred tax valuation allowance as a result of the disposition of ViPS.
     (d) Represents the net impact to equity of the above pro forma adjustments.
   

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