Martin J. Wygod, Chairman and Acting Chief Executive Officer of HLTHCorporation, said: "Our fourth quarter results were strong as WebMD continuedto build its leadership position as the most recognized and trusted brand ofhealth care information." He continued, "I am pleased that HLTH and WebMD haveagreed to the merger transaction we outlined today."
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Consolidated Financial Highlights
Revenue for the fourth quarter was $145.8 million. Earnings beforeinterest, taxes, non-cash and other items ("Adjusted EBITDA") for the fourthquarter was $40.3 million or $0.17 per share. Income from continuingoperations for the fourth quarter was $41.5 million or $0.19 per share. Netincome for the December 2007 quarter was $43.1 million or $0.20 per share.Income from continuing operations and net income for the fourth quarter 2007include a benefit of $23.7 million, or $0.10 per share, relating to certainreversals of its valuation allowance against deferred tax assets, primarilynet operating loss ("NOL") carryforwards.
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Revenue for the year ended December 31, 2007 was $527.1 million. AdjustedEBITDA for the year was $107.7 million or $0.51 per share. Income fromcontinuing operations for the year was $74.3 million or $0.38 per share. Netincome for the year was $19.9 million or $0.12 per share. Income fromcontinuing operations and net income for the year ended December 31, 2007include a benefit of $23.7 million, or $0.11 per share, relating to certainreversals of its valuation allowance against deferred tax assets, primarilyNOL carryforwards.
HLTH's financial results for the fourth quarter and year ended December31, 2007 reflect the reclassification of WebMD's offline professional medicalreference and textbook publication business as a discontinued operation in thecurrent and prior year periods, as a result of the completion of the sale ofthe business on December 31, 2007.
HLTH's consolidated results are not comparable to the respective prioryear periods. On November 16, 2006, HLTH completed the sale of a 52% interestin its Emdeon Business Services segment (excluding the ViPS business) to anaffiliate of General Atlantic LLC. Accordingly, the results of Emdeon BusinessServices are included in HLTH's consolidated revenue and earnings untilNovember 16, 2006, and HLTH's 48% portion of EBS' income is reflected in theline item "Equity in earnings of EBS Master LLC" for all periods subsequent toNovember 16, 2006. As previously disclosed, on February 11, 2008, HLTHcompleted the sale, for $575 million in cash, of its remaining 48% minorityinterest in Emdeon Business Services to General Atlantic LLC and Hellman &Friedman LLC.
Income from discontinued operations includes $3.6 million reflecting thenet gain on the sale of WebMD's offline professional medical reference andtextbook publication business. This business generated revenue ofapproximately $1 million and $4 million for the fourth quarter and full year2007. Also included in discontinued operations is a $1 million net charge froman increase in the estimate of HLTH's indemnification obligation for defensecosts for nine former officers and directors of HLTH's former subsidiaryEmdeon Practice Services, Inc. who were indicted in connection with thepreviously disclosed investigation by the United States Attorney for theDistrict of South Carolina, which was almost fully offset by proceeds fromsettlements with two of the insurance companies related to this matter.
Segment Operating Results
WebMD segment revenue was $96.6 million for the fourth quarter compared to$79.4 million in the prior year period, an increase of 22%, driven bycontinued growth in online services. Segment Adjusted EBITDA was $33.1 millioncompared to $22.4 million in the p
