that WebMD may enter into in the future could impact the levels and
timing of securities available for investment. WebMD excludes
interest income from Adjusted EBITDA (i) because it is not directly
attributable to the performance of WebMD's 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 capital structures. Investors should note
that interest income will recur in future periods.
-- Income Tax Provision. WebMD had a net operating loss (NOL)
carryforward of approximately $270,000 as of the year ended December
31, 2007. As WebMD uses these NOL carryforwards, the related
valuation allowances are reversed through the income statement. The
timing of such reversals has not been consistent and as a result,
WebMD's income tax expense can fluctuate significantly from period
to period in a manner not directly related to WebMD's operating
performance. WebMD excludes the income tax provision from Adjusted
EBITDA (i) because it believes that the income tax provision is not
directly attributable to the underlying performance of WebMD's
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 will recur in future
periods.
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