Emdeon Q1 2007 Earnings Call Transcript

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2007-05-03 17:21:41.0

Tags: HLTH Corp.

Question-and-Answer Session

Operator

Thank you. (Operator Instructions). One moment for our first question. Sandy Draper with Raymond James. Your line is open.

Sandy Draper - Raymond James

Thank you very much, just a couple of quick questions. One on the share count, I missed whether you said the Calipers preferred are in the share count or not in the share count?

Kevin Cameron

They are not in the $167 million share number but they are included in the fully diluted $119 million that we're estimating for the year.

Sandy Draper - Raymond James

Okay.

Marty Wygod

90 million shares.

Sandy Draper - Raymond James

Yeah. Okay, great, that's helpful. And into some on the share count, Marty following up to your comment about continuing to shrink the capitalization, you obviously have cash on the balance sheet, you also have debt, is this something you just look to use current cash, would you be willing to lever up more if a real opportunity came up? Maybe just help me to understand what the thought process would be in terms of the change in the capital structure?

Marty Wygod

We haven't made any definite decisions, we are extremely flexible. And if the right opportunity made itself available, I am sure the Board would be kindly disposed to even lever up the Company to shrink the capitalization. But at this time, we have no plans to do any of that.

Sandy Draper - Raymond James

Okay, great thanks Marty. And then, one final question maybe for Kevin. Obviously, it sounds like the Emdeon Business Services segment is, sort of, that piece of business is doing very, very well, in terms as an investor, or as an analyst trying to track that, just can we really only look at the growth of that minority interest line or the equity earnings line or is there any other metrics where we'll get to sort of track how that business is growing because obviously things are continuing to improve at that segment?

Kevin Cameron

Yeah, well and it's obviously a private investment with General Atlantic, there will be additional disclosures in our Q around revenue, operating expense, and then that equity interest, essentially at net income, that equity interest you are talking about. But you won't be able to have the same visibility that you had in the past.

Sandy Draper - Raymond James

Okay, thanks, and congratulations on the good quarter guys.

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