EX-99.3 4 g27123exv99w3.htm EX-99.3 exv99w3
Exhibit 99.3
FINANCIAL GUIDANCE SUMMARY
WebMD Health Corp
2011 Financial Guidance

(in millions, except per share amounts)
                 
    Year Ended  
    December 31, 2011  
    Guidance Range  
Revenue
  $ 610.0     $ 640.0  
 
           
 
               
Earnings before interest, taxes, depreciation, amortization and other non-cash items (“Adjusted EBITDA”) (a)
  $ 215.0     $ 230.0  
 
               
Interest, taxes, depreciation, amortization and other non-cash items (b)
               
Interest income
    0.5       0.5  
Interest expense
    (20.7 )     (20.7 )
Depreciation and amortization
    (30.0 )     (28.0 )
Non-cash stock-based compensation
    (41.0 )     (38.0 )
Gain on investments
    14.1       14.1  
Other expense, net
    (0.1 )     (0.1 )
 
           
Pre-tax income from continuing operations
    137.8       157.8  
 
               
Income tax provision
    (58.0 )     (66.0 )
 
               
 
           
Income from continuing operations
  $ 79.8     $ 91.8  
 
           
 
               
Income from continuing operations per share:
               
Basic
  $ 1.34     $ 1.55  
 
           
Diluted
  $ 1.28     $ 1.45  
 
           
 
               
Weighted-average shares outstanding used in computing income from continuing operations per common share:
               
Basic
    59       59  
Diluted
    71       71  
 
(a)   See Annex A — Explanation of Non-GAAP Financial Measures
 
(b)   Reconciliation of Adjusted EBITDA to consolidated income from continuing operations
Additional information regarding forecast for the quarter ending June 30, 2011:
  -   Revenue is forecasted to be in excess of $140 million in the quarter ending June 30, 2011
 
  -   Adjusted EBITDA as a percentage of revenue is forecasted to be approximately 31% in the quarter ending June 30, 2011
 
  -   Income from continuing operations as a percentage of revenue is forecasted to be in excess of 8% in the quarter ending June 30, 2011
 
  -   Basic and diluted share count is forecasted to be approximately 58 million and 61 million shares, respectively. The 2.50% and 2.25% Convertible Notes are not expected to be dilutive to income from continuing operations per share during the quarter ending June 30, 2011.
 
  -   Basic and diluted income from continuing operations per share is forecasted to be in excess of $0.19 and $0.18, respectively.
Additional information regarding full year forecast:
  -   Income tax rate for 2011 is forecasted to be approximately 42% of pretax income.
 
  -   The distribution of the annual revenue is expected to be approximately 86% public portals advertising and sponsorship and 14% private portal licensing. Quarterly revenue distributions may vary from this annual estimate.
 
  -   2011 guidance excludes any gains or losses related to investments, other than actual activity related to the quarter ended March 2011.
Additional information regarding full year income per share calculation:
  -   Basic income per share: Reflects a reduction to net income of $0.6 million to consider the effect of restricted stock.
 
  -   Diluted income per share: Reflects an increase to income from continuing operations of $6.7 million and $5.2 million related to the interest expense (net of tax) on the 2.50% and 2.25% Convertible Notes, respectively, offset by a reduction to income from continuing operations of $0.6 million to consider the effect of restricted stock. The diluted share count reflects an additional 6 million and 4 million shares, related to the 2.50% and 2.25% Convertible Notes, respectively.