acquisitions. Additionally, HLTH believes that excluding stock-based
compensation from Adjusted EBITDA assists management and investors in
making meaningful comparisons between HLTH'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.
-- Non-Cash Advertising Expense. This expense relates to the usage of
non-cash advertising obtained from News Corporation ("Newscorp") in
exchange for equity securities issued by HLTH in 2000. The advertising
is available only on various Newscorp properties, primarily its
television network and cable channels without any cash cost to HLTH.
The amount of advertising that can be used in any year is subject to
annual contractual limitation and expires in 2010. HLTH does not incur
any other cash expenses related to airing of television advertising.
HLTH excludes this expense from Adjusted EBITDA (i) because it is a
non-cash expense, (ii) because it is incremental to other non-
television cash advertising expense that HLTH otherwise incurs, (iii)
because HLTH has not and believes it will not incur cash expenses
relating to television advertising in the future and (iv) to assist
management and investors in comparing its operating results over
multiple periods. Investors should note that it is likely that HLTH
|SOURCE HLTH Corporation|
Copyright©2008 PR Newswire.
All rights reserved