WebMD Corporation Expects Greater Benefits From Restructuring Program In The Fourth Quarter
PR NEWSWIRE - January 08, 2001 10:14
ELMWOOD PARK, N.J., Jan 8, 2001 /PRNewswire via COMTEX/ -- WebMD Corporation (Nasdaq: HLTH) announced that Mr. Martin J. Wygod, its Chief Executive Officer, speaking at the Morgan Stanley Dean Witter Internet, Software & Networking Conference 2001 held today in Scottsdale, Arizona, stated: "Although our results for the fourth quarter are subject to completion of our year-end closing process which includes the fiscal 2000 audit, our preliminary indication is that the loss before depreciation, amortization, and restructuring, integration and related expenses for the quarter ended December 31, 2000 is expected to be in the range of $50-55 million rather than the $60- 65 million range previously anticipated. These results are attributable to a more rapid implementation of our integration and consolidation initiatives. As previously announced, there will be significant non-recurring charges in the December quarter, the majority of which are non-cash. These non-recurring charges relate to WebMD's product rationalization efforts, strategic relationship renegotiations, facilities consolidation, employee terminations, and other restructuring initiatives. Definitive results will be announced after completion of our year end audit."
Mr. Wygod also indicated that sales and earnings had softened at Porex Corporation, WebMD's plastic technologies operation, which has been treated since September 2000 as a discontinued operation and is being disposed. As a result of this treatment, Porex's financial results are excluded from WebMD's financial results. Mr. Wygod also said WebMD is proceeding with the disposition in a manner designed to maximize the benefit to WebMD.
Mr. Wygod reported that WebMD retired approximately 5.1 million shares of its Common Stock for approximately $30 million in private transactions. In addition, in the restructuring of WebMD's arrangements with DuPont and News Corporation, WebMD reduced the number of shares subject to warrants that had been issued to DuPont in 1999 from approximately 10 million to 3 million and will retire all of the Preferred Shares held by News Corporation which were convertible into approximately 21 million shares of WebMD Common Stock. In the News Corporation restructuring, WebMD will issue to News Corporation a new warrant to purchase 3 million of its shares at $15 per share.
An audio-only webcast of the presentation at this Morgan Stanley Dean Witter Internet, Software & Networking Conference 2001 is available after 10:00 AM (Eastern Time) today in the "About WebMD" section at www.webmd.com
About WebMD
WebMD provides connectivity and a full suite of services to the healthcare industry that improve administrative efficiencies and clinical effectiveness enabling high-quality patient care. The Company's products and services facilitate information exchange, communication and transactions between the consumer, physician and healthcare institutions. |
