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
derives some benefit from such advertising and that such expenses will
recur in the future.
-- Interest Income and Ex
|SOURCE HLTH Corporation|
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