WebMD Announces Third Quarter Financial Results

WebMD Reaffirms 2015 Outlook

Nov 03, 2015, 16:02 ET from WebMD Health Corp.

NEW YORK, Nov. 3, 2015 /PRNewswire/ -- WebMD Health Corp. (NASDAQ: WBMD), the leading source of health information, today announced financial results for the three months ended September 30, 2015.

"We are pleased to report third quarter results that are above the high end of our financial guidance," said David Schlanger, Chief Executive Officer, WebMD. "With a significant backlog and positive sales momentum, we are reaffirming our 2015 outlook today. We expect to deliver in the fourth quarter the largest quarter in the Company's history. The environment remains strong and we are well positioned to continue to grow revenue and further strengthen our market leadership."  

Financial Highlights For the three months ended September 30, 2015:

  • Revenue was $152.6 million, compared to $143.5 million in the prior year period, an increase of 6%. Advertising and sponsorship revenue was $118.7 million compared to $112.5 million in the prior year period. Private portal services revenue was $27.5 million compared to $25.8 million in the prior year period.  Information services revenue was $6.4 million compared to $5.2 million in the prior year period.
  • Earnings before interest, taxes, non-cash and other items ("Adjusted EBITDA") was $46.4 million, compared to $39.3 million in the prior year period, an increase of 18%.  
  • Net income was $13.2 million or $0.32 per diluted share, compared to $9.8 million, or $0.23 per diluted share in the prior year period. Net income would have been $14.4 million, or $0.34 per diluted share, excluding an after-tax loss on convertible notes of $(1.2) million.

Traffic Highlights Traffic to the WebMD Health Network during the third quarter reached an average of 206 million unique users per month generating 4.00 billion page views for the quarter, increases of 8% and 11%, respectively, from the prior year period.

Balance Sheet Highlights As of September 30, 2015, WebMD had: approximately $612 million in cash and cash equivalents; $803 million in aggregate principal amount of convertible notes outstanding; and approximately 37.5 million shares of its common stock outstanding (including approximately 1.0 million unvested shares of restricted stock).

During the third quarter, WebMD used $23.1 million in cash to repurchase approximately 558 thousand shares of its common stock under its stock repurchase program. As of September 30, 2015, approximately $34 million remained available for repurchases under WebMD's stock repurchase program. Under the repurchase program, WebMD may repurchase shares from time to time in the open market, through block trades or in private transactions, depending on market conditions and other factors.   In addition, WebMD used $151.0 million in cash during the quarter to repurchase $149.6 million principal amount of its 2.25% Convertible Notes due 2016.

Financial Guidance Today, WebMD reaffirmed its 2015 revenue guidance and slightly increased its earnings guidance to reflect lower than anticipated expenses and the effect of convertible note and stock repurchases made since July 30, 2015. 

For the full year ending December 31, 2015, WebMD expects:

  • Revenue to be approximately $625 million to $635 million, an increase of 8% to 9% from the prior year.
    • Approximately $492 million to $500 million of revenue is expected to be from advertising and sponsorship, an increase of 8% to 10% from the prior year. Growth in advertising and sponsorship is expected to be driven primarily by growth in revenue from biopharma and medical device customers of approximately 11% to 12% in 2015.
    • Approximately $107 million to $108.5 million of revenue is expected to be from private portal services, an increase of 4% to 5% from the prior year.
    • Approximately $26 million to $26.5 million of revenue is expected to be from information services, an increase of 12% to 14% from the prior year.
  • Adjusted EBITDA to be approximately $185 million to $192 million, an increase of approximately 17% to 21% from the prior year.
  • Income from continuing operations and net income to be approximately $59 million to $64 million, an increase in income from continuing operations of approximately 44% to 56% from the prior year and an increase in net income of approximately 40% to 52% from the prior year.

For the fourth quarter of 2015, WebMD expects:

  • Revenue to be approximately $181 million to $191 million, an increase of approximately 11% to 17% from the prior year period.
  • Adjusted EBITDA to be approximately $59 million to $66 million, an increase of approximately 23% to 37% from the prior year period.
  • Income from continuing operations and net income to be approximately $22 million to $28 million, an increase in income from continuing operations of approximately 45% to 85% from the prior year period and an increase in net income of approximately 35% to 72% from the prior year period.

A schedule summarizing the Company's financial guidance is attached to this press release.

Analyst and Investor Conference Call WebMD will hold a conference call with investors and analysts at 4:45 p.m. (Eastern) today. The call can be accessed at www.wbmd.com (in the Investor Relations section). A replay of the audio webcast will be available at the same web address.

About WebMD WebMD Health Corp. (NASDAQ: WBMD) is the leading provider of health information services, serving consumers, physicians, healthcare professionals, employers, and health plans through our public and private online portals, mobile platforms and health-focused publications.

The WebMD Health Network includes WebMD.com, Medscape.com, MedicineNet.com, eMedicineHealth.com, RxList.com, Medscape Education (Medscape.org) and other WebMD owned sites and apps.

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All statements contained in this press release and the related analyst and investor conference call, other than statements of historical fact, are forward-looking statements, including those regarding:  guidance on our future financial results and other projections or measures of our future performance; market opportunities or momentum and our ability to capitalize on them; and the benefits expected from new or expected contracts with customers, from new or updated products or services and from other potential sources of additional revenue. These statements speak only as of the date of this press release, are based on our current plans and expectations, and involve risks and uncertainties that could cause actual future events or results to be different than those described in or implied by such forward-looking statements. These risks and uncertainties include those relating to: market acceptance of our products and services; our relationships with customers and other factors affecting their use of our services and the timing of entry into and implementation of specific contracts with customers, including regulatory matters affecting their products and services; our ability to deploy new or updated services and to create new or enhanced revenue streams from those services; our ability to attract and retain qualified personnel; and changes in economic, political or regulatory conditions or other trends affecting the healthcare, Internet and information technology industries.  Further information about these matters can be found in our Securities and Exchange Commission filings and this press release is intended to be read in conjunction with information contained in those filings. Except as required by applicable law or regulation, we do not undertake any obligation to update our forward-looking statements to reflect future events or circumstances.

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This press release, and the accompanying tables, include both financial measures in accordance with accounting principles generally accepted in the United States of America, or GAAP, as well as certain non-GAAP financial measures.  The tables attached to this press release include reconciliations of these non-GAAP financial measures to GAAP financial measures. In addition, an "Explanation of Non-GAAP Financial Measures" is attached to this press release as Annex A. 

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WebMD®, Medscape®, CME Circle®, Medpulse®, eMedicine®, MedicineNet®, theheart.org® and RxList® are among the trademarks of WebMD Health Corp. or its subsidiaries.

 

WEBMD HEALTH CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

 (In thousands, except per share data, unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2015

2014

2015

2014

Revenue

$       152,607

$       143,490

$     444,270

$     417,722

Cost of operations

59,552

56,398

177,836

163,418

Sales and marketing

32,850

32,950

97,896

99,182

General and administrative

22,942

23,243

67,397

69,363

Depreciation and amortization

7,266

7,667

23,103

22,037

Interest income

10

19

36

51

Interest expense

5,681

6,171

18,024

18,515

Loss on convertible notes

2,058

-

2,058

-

Gain on investments

-

-

139

-

Other expense

-

-

4,100

-

Income before income tax provision

22,268

17,080

54,031

45,258

Income tax provision

9,080

7,275

17,468

19,471

Net income

$         13,188

$           9,805

$       36,563

$       25,787

Net income per common share:

Basic

$             0.36

$             0.26

$           1.00

$           0.67

Diluted

$             0.32

$             0.23

$           0.89

$           0.61

Weighted-average shares outstanding used in computing income per common share:

Basic

36,721

37,960

36,606

38,349

Diluted 

49,958

45,757

49,912

46,364

 

 

WEBMD HEALTH CORP.

CONSOLIDATED SUPPLEMENTAL FINANCIAL INFORMATION

 (In thousands, unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2015

2014

2015

2014

Revenue

Advertising and sponsorship

Biopharma and medical device

$        89,870

$        85,118

$      251,692

$      235,587

OTC, CPG and other

28,850

27,370

89,047

91,342

118,720

112,488

340,739

326,929

Private portal services

27,460

25,795

83,223

74,612

Information services

6,427

5,207

20,308

16,181

$      152,607

$      143,490

$      444,270

$      417,722

Earnings before interest, taxes, non-cash and other items ("Adjusted EBITDA") (a)

$        46,405

$        39,301

$      125,872

$      110,484

Interest, taxes, non-cash and other items  (b)

Interest income

10

19

36

51

Interest expense

(5,681)

(6,171)

(18,024)

(18,515)

Income tax provision

(9,080)

(7,275)

(17,468)

(19,471)

Depreciation and amortization 

(7,266)

(7,667)

(23,103)

(22,037)

Non-cash stock-based compensation

(9,142)

(8,402)

(24,731)

(24,725)

Loss on convertible notes

(2,058)

-

(2,058)

-

Gain on investments

-

-

139

-

Other expense

-

-

(4,100)

-

 Net income 

$        13,188

$          9,805

$        36,563

$        25,787

(a)

See Annex A-Explanation of Non-GAAP Financial Measures.

(b)

Reconciliation of Adjusted EBITDA to net income.

 

 

WEBMD HEALTH CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

 (In thousands)

September 30, 2015

December 31, 2014

(unaudited)

Assets

Cash and cash equivalents

$            612,332

$                   706,776

Accounts receivable, net

147,007

136,806

Prepaid expenses and other current assets

19,199

13,877

Deferred tax assets

12,627

18,147

        Total current assets

791,165

875,606

Property and equipment,  net

64,930

59,573

Goodwill

202,980

202,980

Intangible assets, net

11,716

14,215

Deferred tax assets

2,546

18,947

Other assets

21,585

26,236

Total Assets

$         1,094,922

$                1,197,557

Liabilities and Stockholders' Equity

Accrued expenses

$              68,317

$                     72,658

Deferred revenue

105,065

89,785

2.25% convertible notes due 2016

102,682

-

      Total current liabilities

276,064

162,443

2.25% convertible notes due 2016

-

252,232

2.50% convertible notes due 2018

400,000

400,000

1.50% convertible notes due 2020

300,000

300,000

Other long-term liabilities

21,965

21,293

Stockholders' equity

96,893

61,589

Total Liabilities and Stockholders' Equity

$         1,094,922

$                1,197,557

 

 

WEBMD HEALTH CORP.         CONSOLIDATED STATEMENTS OF CASH FLOWS         (In thousands, unaudited)

Nine Months Ended

September 30,

2015

2014

Cash flows from operating activities:

Net income

$           36,563

$        25,787

Adjustments to reconcile net income to net cash provided by

  operating activities:

Depreciation and amortization

23,103

22,037

Non-cash interest, net

3,276

3,384

Non-cash stock-based compensation

24,731

24,725

Deferred income taxes

(7,246)

6,791

Loss on convertible notes

2,058

-

Gain on investments

(139)

-

Changes in operating assets and liabilities:

Accounts receivable

(10,201)

10,784

Prepaid expenses and other, net

(5,692)

(2,429)

Accrued expenses and other long-term liabilities

(4,555)

(9,319)

Deferred revenue

15,280

(901)

Net cash provided by operating activities

77,178

80,859

Cash flows from investing activities:

Cash paid in business combination

-

(3,182)

Proceeds from sale of investments

139

-

Purchases of property and equipment

(25,638)

(17,964)

Net cash used in investing activities

(25,499)

(21,146)

Cash flows from financing activities:

Proceeds from exercise of stock options

15,185

35,857

Cash used for withholding taxes due on stock-based awards

(3,836)

(31,294)

Repurchase of convertible notes

(151,038)

-

Repurchase of shares through tender offers

-

(97,560)

Purchases of treasury stock 

(28,406)

(103,602)

Excess tax benefit on stock-based awards

21,972

11,853

Net cash used in financing activities

(146,123)

(184,746)

Net decrease in cash and cash equivalents

(94,444)

(125,033)

Cash and cash equivalents at beginning of period

706,776

824,880

Cash and cash equivalents at end of period

$         612,332

$      699,847

 

 

WEBMD HEALTH CORP.

NET INCOME PER COMMON SHARE

 (In thousands, except per share data, unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2015

2014

2015

2014

Numerator:

Net income — Basic

$        13,188

$             9,805

$        36,563

$        25,787

Interest expense on 1.50% convertible notes, net of tax

864

864

2,592

2,592

Interest expense on 2.50% convertible notes, net of tax

1,797

-

5,392

-

Net income — Diluted

$        15,849

$           10,669

$        44,547

$        28,379

Denominator:

Weighted-average shares — Basic

36,721

37,960

36,606

38,349

Stock options and restricted stock

1,338

2,113

1,407

2,333

1.50% convertible notes

5,694

5,684

5,694

5,682

2.50% convertible notes

6,205

-

6,205

-

Adjusted weighted-average shares after assumed conversions — Diluted

49,958

45,757

49,912

46,364

Net income per common share:

Basic

$            0.36

$               0.26

$            1.00

$            0.67

Diluted

$            0.32

$               0.23

$            0.89

$            0.61

 

 

WEBMD HEALTH CORP.

FINANCIAL GUIDANCE FOR THE YEAR ENDING DECEMBER 31, 2015

(in millions, except per share amounts)

Guidance Range

Revenue

Advertising and sponsorship

Biopharma and medical device

$          364.0

$          370.0

OTC, CPG and other

128.0

130.0

492.0

500.0

Private portal services

107.0

108.5

Information services

26.0

26.5

$          625.0

$          635.0

Earnings before interest, taxes, non-cash and other items ("Adjusted EBITDA") (a)

$          185.0

$          192.0

Interest, taxes, non-cash and other items (b)

     Interest expense, net

(23.1)

(23.1)

     Depreciation and amortization

(31.0)

(30.0)

     Non-cash stock-based compensation

(34.0)

(33.0)

     Loss on convertible notes

(2.1)

(2.1)

     Gain on investments

0.1

0.1

     Other expense

(4.1)

(4.1)

Income before income tax provision

90.8

99.8

Income tax provision

(32.0)

(35.5)

Income from continuing operations and net income

$            58.8

$            64.3

Income per share:

     Basic

$            1.61

$            1.74

     Diluted (c)

$            1.39

$            1.46

Calculation of income per share:

Net income (numerator for basic income per share)

$            58.8

$            64.3

Add-back of interest expense, net of tax, related to:

   1.50% convertible notes

3.5

3.5

   2.50% convertible notes

7.2

7.2

   2.25% convertible notes

3.5

3.5

Numerator for diluted income per share

$            73.0

$            78.5

Weighted average shares outstanding (denominator for basic income per share)

36.5

37.0

Stock options and restricted stock

1.5

2.0

Weighted average shares issuable upon conversion of:

   1.50% convertible notes

5.7

5.7

   2.50% convertible notes

6.2

6.2

   2.25% convertible notes

2.7

2.7

Denominator for diluted income per share

52.6

53.6

(a) See Annex A - Explanation of Non-GAAP Financial Measures

(b) Reconciliation of Adjusted EBITDA to net income

(c) See Supplemental 2015 Guidance for Income Per Share Calculation below

Additional information regarding forecast for the quarter ending December 31, 2015:

     -     Revenue is forecasted to be between $181 million to $191 million

     -     Revenue distribution is forecasted to be approximately 62% to Biopharma and medical device;

     22% to OTC, CPG and other; 13% to private portal services and 3% to information services

     -     Adjusted EBITDA is forecasted to be between $59 million to $66 million

     -     Net income is forecasted to be between $22 million to $28 million

The above guidance does not include the impact if any, of future deployment of capital for items such as share repurchases, convertible note repurchases or acquisitions, any future gains or losses from discontinued operations, any future gains or losses on investments, and other future non-recurring, one-time or unusual items.

 

 

WEBMD HEALTH CORP.

SUPPLEMENTAL 2015 GUIDANCE FOR INCOME PER SHARE CALCULATION

Based on the Company's Financial Guidance for the Year Ending December 31, 2015, the 1.50% convertible notes, the 2.50% convertible notes and the 2.25% convertible notes are expected to be dilutive to net income on both the low end and high end of the full year guidance range.  Additionally, each of the series of convertible notes may be dilutive in certain quarters, depending on the amount of net income for such quarter.  The following table contains the approximate level of net income for an individual quarter and for the full year 2015 at which each of the series of convertible notes would become dilutive to income per share.  To the extent this net income is exceeded for any such period, the table also includes the amounts by which the numerator and denominator should each be adjusted for purposes of the diluted income per share calculation.  The amounts below assume a weighted-average diluted share count of 38.0 million shares (prior to the effect of convertible notes) and the amounts are subject to change as such weighted-average share count changes.

Quarterly Amounts

Annual Amounts

All amounts in millions

1.50% Convertible Notes

2.50% Convertible Notes

2.25% Convertible Notes

1.50% Convertible Notes

2.50% Convertible Notes

2.25% Convertible Notes

Approximate net income at which convertible notes  become dilutive:

$            5.8

$          11.8

$          13.0

$          23.1

$          47.2

$          52.3

Interest expense, net of tax to add-back to net income (numerator):

$            0.9

$            1.8

$            0.4

$            3.5

$            7.2

$            3.5

Additional shares to include in weighted-average diluted share count (denominator):

5.7

6.2

1.4

5.7

6.2

2.7

 

ANNEX A

Explanation of Non-GAAP Financial Measures

The accompanying WebMD Health Corp. press release and attachments include both financial measures in accordance with U.S. generally accepted accounting principles, or GAAP, as well as non-GAAP financial measures.  The non-GAAP financial measures represent earnings before interest, taxes, non-cash and other items (which we refer to as "Adjusted EBITDA") and related per share amounts.  Adjusted EBITDA should be viewed as supplemental to, and not as an alternative for net income or loss calculated in accordance with GAAP (referred to below as "net income") or income or loss from continuing operations calculated in accordance with GAAP (referred to below as "income from continuing operations").  The attachments to the press release include reconciliations of non-GAAP financial measures to GAAP financial measures. 

Adjusted EBITDA is used by our management as an additional measure of our company's performance for purposes of business decision-making, including developing budgets, managing expenditures, and evaluating potential acquisitions or divestitures.  Period-to-period comparisons of Adjusted EBITDA help our management identify additional trends in our company's financial results that may not be shown solely by period-to-period comparisons of net income or income from continuing operations.  In addition, we may use Adjusted EBITDA in the incentive compensation programs applicable to some of our employees in order to evaluate our company's performance.  Our management recognizes that Adjusted EBITDA has inherent limitations because of the excluded items, particularly those items that are recurring in nature.  In order to compensate for those limitations, management also reviews the specific items that are excluded from Adjusted EBITDA, but included in net income or income from continuing operations, as well as trends in those items.  The amounts of those items are set forth, for the applicable periods, in the reconciliations of Adjusted EBITDA to net income or income from continuing operations that accompany our press releases and disclosure documents containing non-GAAP financial measures, including the reconciliations contained in the accompanying press release attachments.

We believe that the presentation of Adjusted EBITDA is useful to investors in their analysis of our results for reasons similar to the reasons why our management finds it useful and because it helps facilitate investor understanding of decisions made by management in light of the performance metrics used in making those decisions.  In addition, as more fully described below, we believe that providing Adjusted EBITDA, together with a reconciliation of Adjusted EBITDA to net income or income from continuing operations, helps investors make comparisons between our company and other companies that may have different capital structures, different effective income tax rates and tax attributes, different capitalized asset values and/or different forms of employee compensation.  However, Adjusted EBITDA is intended to provide a supplemental way of comparing our company with other public companies and is not intended as a substitute for comparisons based on net income or income from continuing operations.  In making any comparisons to other companies, investors need to be aware that companies use different non-GAAP measures to evaluate their financial performance.  Investors should pay close attention to the specific definition being used and to the reconciliation between such measures and the corresponding GAAP measures provided by each company under applicable SEC rules.

The following is an explanation of the items excluded by us from Adjusted EBITDA but included in net income and income from continuing operations:

  • Depreciation and Amortization. Depreciation and amortization expense is a non-cash expense relating to capital expenditures and intangible assets arising from acquisitions that are expensed on a straight-line basis over the estimated useful life of the related assets. We exclude depreciation and amortization expense from Adjusted EBITDA because we believe that (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations and (ii) such expenses can vary significantly between periods as a result of new acquisitions and full amortization of previously acquired tangible and intangible assets. Accordingly, we believe that this exclusion assists management and investors in making period-to-period comparisons of operating performance. Investors should note that the use of tangible and intangible assets contributed to revenue in the periods presented and will contribute to future revenue generation and should also note that such expense will recur in future periods.
  • Stock-Based Compensation Expense. Stock-based compensation expense is a non-cash expense arising from the grant of stock-based awards to employees. We believe that excluding the effect of stock-based compensation from Adjusted EBITDA assists management and investors in making period-to-period comparisons in our company's operating performance because (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations and (ii) such expenses can vary significantly between periods as a result of the timing of grants of new stock-based awards, including grants in connection with acquisitions. Additionally, we believe that excluding stock-based compensation from Adjusted EBITDA assists management and investors in making meaningful comparisons between our company's operating performance and the operating performance of other companies that may use different forms of employee compensation or different valuation methodologies for their stock-based compensation. Investors should note that stock-based compensation is a key incentive offered to employees whose efforts contributed to the operating results in the periods presented and are expected to contribute to operating results in future periods. Investors should also note that such expenses will recur in the future. Stock-based compensation expenses included in the Consolidated Statement of Operations are summarized as follows:

Three Months Ended

Nine Months Ended

September 30,

September 30,

2015

2014

2015

2014

Non-cash stock-based compensation included in:

Cost of operations

$    1,370

$    1,663

$    3,791

$    4,556

Sales and marketing

$    1,968

$    1,863

$    5,099

$    5,662

General and administrative

$    5,804

$    4,876

$  15,841

$  14,507

 

  • Interest Income and Expense.  Interest income is associated with the level of marketable debt securities and other interest bearing accounts in which we invest, and interest expense is related to our company's capital structure (including non-cash interest expense relating to our convertible notes).  Interest income and expense varies over time due to a variety of financing transactions and due to acquisitions and divestitures that we have entered into or may enter into in the future.  We have, in the past, issued convertible debentures, repurchased shares in cash tender offers and repurchased shares and convertible debentures through other repurchase transactions, and completed the divestiture of certain businesses.  We exclude interest income and interest expense from Adjusted EBITDA (i) because these items are not directly attributable to the performance of our business operations and, accordingly, their exclusion assists management and investors in making period-to-period comparisons of operating performance and (ii) to assist management and investors in making comparisons to companies with different capital structures.  Investors should note that interest income and expense will recur in future periods.  The following provides detail regarding the components of interest expense of our convertible notes:

 

Three Months Ended

Nine Months Ended

September 30,

September 30,

2015

2014

2015

2014

Non-cash interest expense

2.25% Convertible Notes

$         282

$       390

$      1,062

$     1,170

2.50% Convertible Notes

$         447

$       446

$      1,339

$     1,339

1.50% Convertible Notes

$         291

$       292

$         875

$        875

 

Cash interest expense

2.25% Convertible Notes

$      1,036

$    1,418

$      3,873

$     4,256

2.50% Convertible Notes

$      2,500

$    2,500

$      7,500

$     7,500

1.50% Convertible Notes

$      1,125

$    1,125

$      3,375

$     3,375

 

  • Income Tax Provision (Benefit). We maintain a valuation allowance on a portion of our net deferred tax assets (including our net operating loss carryforwards), the amount of which may change from quarter to quarter based on factors that are not directly related to our results for the quarter. The valuation allowance is either adjusted through the statement of operations or additional paid-in capital. The timing of such adjustments has not been consistent and as a result, our income tax expense can fluctuate significantly from period to period in a manner not directly related to our operating performance. We exclude the income tax provision (benefit) from Adjusted EBITDA (i) because we believe that the income tax provision (benefit) is not directly attributable to the underlying performance of our business operations and, accordingly, its exclusion assists management and investors in making period-to-period comparisons of operating performance and (ii) to assist management and investors in making comparisons to companies with different tax attributes. Investors should note that income tax provision (benefit) will recur in future periods.
  • Other Items. We engage in other activities and transactions that can impact our net income or income from continuing operations. In recent periods, these other items included, but were not limited to: (i) gain on investments; (ii) settlements of litigation or claims; (iii) loss on repurchases of our convertible notes; and (iv) severance expense. We exclude these other items from Adjusted EBITDA because we believe these activities or transactions are not directly attributable to the performance of our business operations and, accordingly, their exclusion assists management and investors in making period-to-period comparisons of operating performance. Investors should note that some of these other items may recur in future periods.

 

SOURCE WebMD Health Corp.



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