Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - ENVESTNET, INC. | d8k.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
Envestnet Reports Second Quarter 2011 Financial Results
Chicago, IL – August 9, 2011 – Envestnet (NYSE: ENV), a leading provider of technology-enabled wealth management solutions to financial advisors, today reported financial results for its second quarter ended June 30, 2011.
Financial results for the second quarter of 2011 compared to the second quarter of 2010:
| • | Revenues from assets under management (AUM) or assets under administration (AUA) increased 36% to $25.4 million for the second quarter of 2011 from $18.7 million for the second quarter of 2010; total revenues, which includes licensing and professional services fees, increased 29% to $31.3 million for the second quarter of 2011 from $24.2 million for the second quarter of 2010 |
| • | Adjusted EBITDA(1) increased 58% to $7.1 million for the second quarter of 2011 from $4.5 million for the second quarter of 2010 |
| • | Adjusted Net Income(1) increased to $3.3 million, or $0.10 per diluted share, for the second quarter of 2011 from $1.8 million, or $0.06 per diluted share, for the second quarter of 2010 |
| • | Net income attributable to common stockholders was $2.4 million, or $0.07 per diluted share, for the second quarter of 2011 compared to $0.1 million, or $0.01 per diluted share, for the second quarter of 2010 |
“Our second quarter results show continued progress in our empowering advisors to better serve their clients, as we grew revenue year-over-year by nearly 30 percent,” said Jud Bergman, founder and chief executive officer of Envestnet.
“Envestnet benefits from several long-term trends, including an increase in advisors seeking independence, a move toward fee-based business, and outsourcing of wealth management solutions. In addition, we believe our solid organic growth can be enhanced by consolidating transactions,” Bergman continued. “The acquisition of FundQuest should accelerate Envestnet’s growth and provide benefits to both our advisors and shareholders in the coming quarters. As part of Envestnet, the acquisition of FundQuest will enable us to offer advisors more fully integrated wealth management solutions and strengthen our relationships with them.”
Key Operating Metrics as of and for the quarter ended June 30, 2011:
| • | AUM of $16.5 billion, up 52% from June 30, 2010 |
| • | AUA of $54.3 billion, up 28% from June 30, 2010 |
| • | Advisors (AUM/A only) of 14,613, up 14% from June 30, 2010 |
| • | Gross sales of AUM/A of $6.9 billion, resulting in net flows of $1.9 billion |
The following table summarizes the changes in AUM and AUA for the quarter ended June 30, 2011:
| In Millions Except Account Data |
3/31/11 | Gross Sales |
Redemptions | Net Flows |
Market Impact |
6/30/11 | ||||||||||||||||||
| Assets under Management (AUM) |
$ | 15,635 | $ | 1,880 | $ | (1,074 | ) | $ | 806 | $ | 52 | $ | 16,493 | |||||||||||
| Assets under Administration (AUA) |
53,115 | 4,986 | (3,895 | ) | 1,091 | 55 | 54,261 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total AUM/A |
$ | 68,750 | $ | 6,866 | $ | (4,969 | ) | $ | 1,897 | $ | 107 | $ | 70,754 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Fee-Based Accounts |
323,656 | 26,858 | (18,217 | ) | 8,641 | 332,297 | ||||||||||||||||||
During the second quarter, the Company added $0.5 billion of conversions, which are included in the above AUM/A gross sales figures.
Review of Financial Results
Total revenues increased 29% to $31.3 million for the second quarter of 2011 from $24.3 million for the second quarter of 2010. The increase was primarily due to a 36% increase in revenues from assets under management or administration to $25.4 million from $18.7 million in the prior year period.
Total operating expenses in the second quarter of 2011 increased 20% to $28.2 million from $23.5 million in the prior year period. After certain non-GAAP adjustments(2) included in our Adjusted EBITDA reconciliation, total operating expenses increased 23% compared to the prior year. Cost of revenues increased 42% to $10.9 million in the second quarter of 2011 from $7.7 million in the second quarter of 2010 due to the increase in revenue from AUM or AUA. Compensation and benefits increased 13% to $10.4 million in the second quarter of 2011 from $9.2 million in the prior year period, primarily due to an increase in headcount between periods as the Company staffed to support the growth of the business.
Income from operations was $3.2 million for the second quarter of 2011 compared to $0.8 million for the second quarter of 2010. Net income attributable to common stockholders was $2.4 million, or $0.07 per diluted share, for the second quarter of 2011 compared to $0.1 million, or $0.01 per diluted share, for the second quarter of 2010.
Adjusted EBITDA(1) in the second quarter of 2011 was $7.1 million, up 58% from $4.5 million in the prior year period, reflecting expanding margins. Adjusted Operating Income(1) was $5.5 million, up 81% from $3.1 million in the prior year period. Adjusted Net Income(1) was $3.3 million, compared to $1.8 million in the second quarter of 2010. Adjusted Net Income Per Share(1) was $0.10 per diluted share, compared to $0.06 per diluted share in the second quarter of 2010.
Recent Events
The Company announced on August 5, 2011 that it signed a definitive agreement to acquire FundQuest Inc., a division of BNP Paribas, for approximately $24.4 million in cash. The transaction is subject to customary closing conditions and is expected to close during the fourth quarter of 2011. For more information, the press release can be found at http://ir.envestnet.com/.
Conference Call
The Company will host a conference call to discuss second quarter 2011 financial results today at 5:00 p.m. ET. The call will be webcast live from the Company’s investor relations website at http://ir.envestnet.com/ and can also be accessed live over the phone by dialing (888) 510-1762, or (719) 325-2199 for international callers. A replay will be available beginning one hour after the call and can be accessed by dialing (877) 870-5176, or (858) 384-5517 for international callers; the conference ID is 1431688. The replay will be available until Tuesday, August 23, 2011.
About Envestnet
Envestnet, Inc. is a leading provider of technology-enabled wealth management solutions to financial advisors. Envestnet’s technology is focused on addressing financial advisors’ front-, middle- and back-office needs. Envestnet is headquartered in Chicago with offices in Boston, Denver, New York, Silicon Valley and Trivandrum, India. For more information on Envestnet please go to www.envestnet.com.
(1) Non-GAAP Financial Measures
“Adjusted EBITDA” represents net income (loss) before interest income, interest expense, income tax provision (benefit), depreciation and amortization, non-cash stock-based compensation expense, unrealized gain (loss) on investments, other income, restructuring charges and transaction costs, severance, bad debt expense, customer inducement costs and litigation related expense.
2
“Adjusted operating income” represents income (loss) from operations before non-cash stock-based compensation expense, restructuring charges and transaction costs, severance, bad debt expense, customer inducement costs and litigation related expense.
“Adjusted net income” represents net income (loss) before non-cash stock-based compensation expense, restructuring expense and transaction costs, severance, bad debt expense, customer inducement costs, other income, imputed interest expense and litigation related expense. Reconciling items are tax effected using the income tax rates in effect on the applicable date.
“Adjusted net income per share” represents adjusted net income attributable to common stockholders divided by the diluted number of weighted-average shares outstanding.
See reconciliation of Non-GAAP Financial Measures at the end of this press release. These measures should not be viewed as a substitute for net income determined in accordance with United States generally accepted accounting principles (GAAP).
(2) Adjustments include stock-based compensation expense, restructuring charges and transaction costs, severance and litigation related expense. See the Reconciliation of Non-GAAP Financial Measures – Adjusted EBITDA table for 2011 and 2010 amounts.
Cautionary Statement Regarding Forward-Looking Statements
The forward-looking statements made in this press release and its attachments concerning, among other things, Envestnet, Inc.’s (the “Company”) expected financial performance and outlook, its strategic operational plans and growth strategy are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties and the Company’s actual results could differ materially from the results expressed or implied by such forward-looking statements. Furthermore, reported results should not be considered as an indication of future performance. The potential risks, uncertainties and other factors that could cause actual results to differ from those expressed by the forward-looking statements in this press release include, but are not limited to, difficulty in sustaining rapid revenue growth, which may place significant demands on the Company’s administrative, operational and financial resources, fluctuations in the Company’s revenue, the concentration of nearly all of the Company’s revenues from the delivery of investment solutions and services to clients in the financial advisory industry, the Company’s reliance on a limited number of clients for a material portion of its revenue, the renegotiation of fee percentages or termination of the Company’s services by its clients, the impact of market and economic conditions on the Company’s revenues, compliance failures, regulatory actions against the Company, the failure to protect the Company’s intellectual property rights, the Company’s inability to successfully execute the conversion of its clients’ assets from their technology platform to the Company’s technology platform in a timely and accurate manner, general economic, political and regulatory conditions, as well as management’s response to these factors. More information regarding these and other risks, uncertainties and factors is contained in the Company’s filings with the Securities and Exchange Commission (“SEC”) which are available on the SEC’s website at www.sec.gov or the Company’s Investor Relations website at http://ir.envestnet.com/. You are cautioned not to unduly rely on these forward-looking statements, which speak only as of the date of this press release. All information in this press release and its attachments is as of August 9, 2011 and, unless required by law, the Company undertakes no obligation to publicly revise any forward-looking statement to reflect circumstances or events after the date of this press release or to report the occurrence of unanticipated events.
| Contacts | ||
| Investor Relations | Media Relations | |
| investor.relations@envestnet.com | mediarelations@envestnet.com | |
| (312) 827-3940 |
3
Envestnet, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except share information)
(Unaudited)
| June 30, 2011 |
December 31, 2010 |
|||||||
| Assets |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | 78,600 | $ | 67,668 | ||||
| Fees receivable |
8,693 | 9,135 | ||||||
| Deferred tax assets - current |
51 | 107 | ||||||
| Prepaid expenses and other current assets |
2,448 | 2,026 | ||||||
|
|
|
|
|
|||||
| Total current assets |
89,792 | 78,936 | ||||||
|
|
|
|
|
|||||
| Property and equipment, net |
10,816 | 9,713 | ||||||
| Internally developed software, net |
3,639 | 3,621 | ||||||
| Intangible assets, net |
817 | 1,330 | ||||||
| Goodwill |
2,031 | 2,031 | ||||||
| Deferred tax assets |
11,588 | 13,649 | ||||||
| Customer inducements |
27,987 | 30,400 | ||||||
| Other non-current assets |
2,175 | 2,188 | ||||||
|
|
|
|
|
|||||
| Total assets |
$ | 148,845 | $ | 141,868 | ||||
|
|
|
|
|
|||||
| Liabilities and Stockholders’ Equity |
||||||||
| Current liabilities: |
||||||||
| Accrued expenses |
$ | 12,978 | $ | 12,859 | ||||
| Accounts payable |
1,758 | 1,707 | ||||||
| Customer inducements payable - current |
1,000 | 1,000 | ||||||
| Note payable - current |
164 | 159 | ||||||
| Deferred revenue |
102 | 232 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
16,002 | 15,957 | ||||||
|
|
|
|
|
|||||
| Deferred rent liability |
1,285 | 1,244 | ||||||
| Lease incentive liability |
2,620 | 2,771 | ||||||
| Customer inducements payable |
18,213 | 18,806 | ||||||
| Note payable |
— | 159 | ||||||
| Other non-current liabilities |
744 | 612 | ||||||
|
|
|
|
|
|||||
| Total liabilities |
38,864 | 39,549 | ||||||
|
|
|
|
|
|||||
| Stockholders’ equity |
||||||||
| Preferred stock |
— | — | ||||||
| Common stock, par value $0.005, 500,000,000 shares authorized as of June 30, 2011 and December 31, 2010, respectively; 43,438,322 and 43,068,371 shares issued as of June 30, 2011 and December 31, 2010, respectively; 31,733,149 and 31,368,822 shares outstanding as of June 30, 2011 and December 31, 2010, respectively |
217 | 215 | ||||||
| Additional paid-in capital |
161,681 | 157,778 | ||||||
| Accumulated deficit |
(41,496 | ) | (45,347 | ) | ||||
| Treasury stock at cost, 11,705,173 and 11,699,549 shares as of June 30, 2011 and December 31, 2010, respectively |
(10,421 | ) | (10,327 | ) | ||||
|
|
|
|
|
|||||
| Total stockholders’ equity |
109,981 | 102,319 | ||||||
|
|
|
|
|
|||||
| Total liabilities and stockholders’ equity |
$ | 148,845 | $ | 141,868 | ||||
|
|
|
|
|
|||||
4
Envestnet, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except share and per share information)
(Unaudited)
| Three Months
Ended June 30, |
Six Months
Ended June 30, |
|||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Revenues: |
||||||||||||||||
| Assets under management or administration |
$ | 25,427 | $ | 18,715 | $ | 48,698 | $ | 35,111 | ||||||||
| Licensing and professional services |
5,907 | 5,532 | 11,898 | 10,768 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total revenues |
31,334 | 24,247 | 60,596 | 45,879 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating expenses: |
||||||||||||||||
| Cost of revenues |
10,917 | 7,698 | 21,045 | 14,718 | ||||||||||||
| Compensation and benefits |
10,387 | 9,183 | 20,533 | 17,273 | ||||||||||||
| General and administration |
5,258 | 5,082 | 10,134 | 12,191 | ||||||||||||
| Depreciation and amortization |
1,578 | 1,428 | 3,126 | 2,759 | ||||||||||||
| Restructuring charges |
43 | 67 | 53 | 819 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total operating expenses |
28,183 | 23,458 | 54,891 | 47,760 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income (loss) from operations |
3,151 | 789 | 5,705 | (1,881 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Other income (expense): |
||||||||||||||||
| Interest income |
20 | 41 | 46 | 85 | ||||||||||||
| Interest expense |
(204 | ) | (128 | ) | (415 | ) | (128 | ) | ||||||||
| Other income |
1,100 | — | 1,100 | — | ||||||||||||
| Unrealized gain (loss) on investments |
1 | (3 | ) | 4 | — | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total other income (expense) |
917 | (90 | ) | 735 | (43 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income (loss) before income tax provision |
4,068 | 699 | 6,440 | (1,924 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income tax provision |
1,621 | 306 | 2,589 | 194 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income (loss) |
2,447 | 393 | 3,851 | (2,118 | ) | |||||||||||
| Less preferred stock dividends |
— | (179 | ) | — | (357 | ) | ||||||||||
| Less net income allocated to participating preferred stock |
— | (107 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income (loss) attributable to common stockholders |
$ | 2,447 | $ | 107 | $ | 3,851 | $ | (2,475 | ) | |||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income (loss) per share attributable to common stockholders: |
||||||||||||||||
| Basic |
$ | 0.08 | $ | 0.01 | $ | 0.12 | $ | (0.19 | ) | |||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
$ | 0.07 | $ | 0.01 | $ | 0.12 | $ | (0.19 | ) | |||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Weighted average common shares outstanding: |
||||||||||||||||
| Basic |
31,591,412 | 13,068,492 | 31,502,139 | 13,017,943 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
32,969,824 | 14,081,578 | 32,912,916 | 13,017,943 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
5
Envestnet, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands, unaudited)
| Six Months Ended June 30, |
||||||||
| 2011 | 2010 | |||||||
| OPERATING ACTIVITIES: |
||||||||
| Net income (loss) |
$ | 3,851 | $ | (2,118 | ) | |||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
||||||||
| Depreciation and amortization |
3,126 | 2,759 | ||||||
| Amortization of customer inducements |
2,413 | 785 | ||||||
| Deferred rent and lease incentive |
(110 | ) | 196 | |||||
| Provision for doubtful accounts |
— | 2,668 | ||||||
| Unrealized gain on investments |
(4 | ) | — | |||||
| Deferred income taxes |
2,117 | 158 | ||||||
| Stock-based compensation |
1,645 | 524 | ||||||
| Interest expense |
415 | 128 | ||||||
| Changes in operating assets and liabilities: |
||||||||
| Fees receivable |
442 | (226 | ) | |||||
| Prepaid expenses and other current assets |
(422 | ) | (2,468 | ) | ||||
| Other non-current assets |
— | 20 | ||||||
| Customer inducements |
(1,000 | ) | (11,300 | ) | ||||
| Accrued expenses |
119 | 2,537 | ||||||
| Accounts payable |
51 | 249 | ||||||
| Deferred revenue |
(130 | ) | 173 | |||||
| Other non-current liabilities |
132 | 67 | ||||||
|
|
|
|
|
|||||
| Net cash provided by (used in) operating activities |
12,645 | (5,848 | ) | |||||
|
|
|
|
|
|||||
| INVESTING ACTIVITIES: |
||||||||
| Purchase of property and equipment |
(2,917 | ) | (2,714 | ) | ||||
| Capitalization of internally developed software |
(817 | ) | (640 | ) | ||||
| Repayment of notes payable |
(162 | ) | — | |||||
| Proceeds from repayment of notes receivable |
— | 128 | ||||||
| Increase in notes receivable |
— | (82 | ) | |||||
| Proceeds from investments |
17 | 21 | ||||||
| Acquisition of businesses, net of cash acquired |
— | (300 | ) | |||||
|
|
|
|
|
|||||
| Net cash used in investing activities |
(3,879 | ) | (3,587 | ) | ||||
|
|
|
|
|
|||||
| FINANCING ACTIVITIES: |
||||||||
| Proceeds from issuance of preferred stock |
— | 1,505 | ||||||
| Proceeds from exercise of stock options |
2,260 | 1,250 | ||||||
| Purchase of treasury stock |
(94 | ) | (2,015 | ) | ||||
|
|
|
|
|
|||||
| Net cash provided by financing activities |
2,166 | 740 | ||||||
|
|
|
|
|
|||||
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
10,932 | (8,695 | ) | |||||
|
|
|
|
|
|||||
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
67,668 | 31,525 | ||||||
|
|
|
|
|
|||||
| CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ | 78,600 | $ | 22,830 | ||||
|
|
|
|
|
|||||
6
Envestnet, Inc.
Reconciliation of Non-GAAP Financial Measures
(in thousands, unaudited)
| Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Net income (loss) |
$ | 2,447 | $ | 393 | $ | 3,851 | $ | (2,118 | ) | |||||||
| Add (deduct): |
||||||||||||||||
| Interest income |
(20 | ) | (41 | ) | (46 | ) | (85 | ) | ||||||||
| Interest expense |
204 | 128 | 415 | 128 | ||||||||||||
| Income tax provision |
1,621 | 306 | 2,589 | 194 | ||||||||||||
| Depreciation and amortization |
1,578 | 1,428 | 3,126 | 2,759 | ||||||||||||
| Stock-based compensation expense |
829 | 292 | 1,645 | 524 | ||||||||||||
| Unrealized (gain) loss on investments |
(1 | ) | 3 | (4 | ) | — | ||||||||||
| Other income |
(1,100 | ) | — | (1,100 | ) | — | ||||||||||
| Restructuring charges (excluding severance) and transaction costs |
53 | 67 | 63 | 723 | ||||||||||||
| Severance |
246 | 28 | 303 | 124 | ||||||||||||
| Bad debt expense |
— | — | — | 2,668 | ||||||||||||
| Customer inducement costs |
1,207 | 770 | 2,413 | 785 | ||||||||||||
| Litigation related expense |
58 | 1,124 | 91 | 1,848 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted EBITDA |
$ | 7,122 | $ | 4,498 | $ | 13,346 | $ | 7,550 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Income (loss) from operations |
$ | 3,151 | $ | 789 | $ | 5,705 | $ | (1,881 | ) | |||||||
| Add: |
||||||||||||||||
| Stock-based compensation expense |
829 | 292 | 1,645 | 524 | ||||||||||||
| Restructuring charges (excluding severance) and transaction costs |
53 | 67 | 63 | 723 | ||||||||||||
| Severance |
246 | 28 | 303 | 124 | ||||||||||||
| Bad debt expense |
— | — | — | 2,668 | ||||||||||||
| Customer inducement costs |
1,207 | 770 | 2,413 | 785 | ||||||||||||
| Litigation related expense |
58 | 1,124 | 91 | 1,848 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted operating income |
$ | 5,544 | $ | 3,070 | $ | 10,220 | $ | 4,791 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
7
Envestnet, Inc.
Reconciliation of Non-GAAP Financial Measures (continued)
(In thousands, except share and per share information; unaudited)
| Three Months
Ended June 30, |
Six Months
Ended June 30, |
|||||||||||||||
| 2011* | 2010* | 2011* | 2010* | |||||||||||||
| Net income (loss) |
$ | 2,447 | $ | 393 | $ | 3,851 | $ | (2,118 | ) | |||||||
| Add (deduct): |
||||||||||||||||
| Stock-based compensation expense |
496 | 175 | 984 | 313 | ||||||||||||
| Restructuring charges (excluding severance) and transaction costs |
32 | 40 | 38 | 432 | ||||||||||||
| Severance |
147 | 16 | 181 | 74 | ||||||||||||
| Bad debt expense |
— | — | — | 2,668 | ||||||||||||
| Customer inducement costs |
722 | 460 | 1,443 | 469 | ||||||||||||
| Other income |
(658 | ) | — | (658 | ) | — | ||||||||||
| Imputed interest expense |
121 | 74 | 243 | 74 | ||||||||||||
| Litigation related expense |
35 | 672 | 54 | 1,105 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted net income |
3,342 | 1,830 | 6,136 | 3,017 | ||||||||||||
| Less: Preferred stock dividends |
— | (179 | ) | — | (357 | ) | ||||||||||
| Less: Net income allocated to participating preferred stock |
— | (823 | ) | — | (1,323 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted net income attributable to common stockholders |
$ | 3,342 | $ | 828 | $ | 6,136 | $ | 1,337 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Basic number of weighted-average shares outstanding |
31,591,412 | 13,068,492 | 31,502,139 | 13,017,943 | ||||||||||||
| Effect of dilutive shares: |
||||||||||||||||
| Options to purchase common stock |
1,082,818 | 1,013,086 | 1,112,797 | 965,571 | ||||||||||||
| Common warrants |
295,594 | — | 297,980 | 119,535 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted number of weighted-average shares outstanding |
32,969,824 | 14,081,578 | 32,912,916 | 14,103,049 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted net income per share |
$ | 0.10 | $ | 0.06 | $ | 0.19 | $ | 0.09 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| * | Adjustments, excluding bad debt expense, are tax effected using an income tax rate of 40.2% for 2011 and 2010. |
Envestnet, Inc.
Historical Assets, Accounts and Advisors
(in millions, except account and advisor data; unaudited)
| As of | ||||||||||||||||||||
| June 30, 2010 |
September 30, 2010 |
December 31, 2010 |
March 31, 2011 |
June 30, 2011 |
||||||||||||||||
| Platform Assets |
||||||||||||||||||||
| Assets Under Management (AUM) |
$ | 10,863 | $ | 12,352 | $ | 14,486 | $ | 15,635 | $ | 16,493 | ||||||||||
| Assets Under Administration (AUA) |
42,555 | 46,655 | 49,202 | 53,115 | 54,261 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Subtotal AUM/A |
53,418 | 59,007 | 63,688 | 68,750 | 70,754 | |||||||||||||||
| Licensing |
53,199 | 67,343 | 75,668 | 83,538 | 68,531 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Platform Assets |
$ | 106,617 | $ | 126,350 | $ | 139,356 | $ | 152,288 | $ | 139,285 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Platform Accounts |
||||||||||||||||||||
| AUM |
52,477 | 56,094 | 65,663 | 71,396 | 77,302 | |||||||||||||||
| AUA |
222,482 | 229,154 | 241,162 | 252,260 | 254,995 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Subtotal AUM/A |
274,959 | 285,248 | 306,825 | 323,656 | 332,297 | |||||||||||||||
| Licensing |
550,651 | 574,903 | 603,950 | 601,512 | 572,612 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Platform Accounts |
825,610 | 860,151 | 910,775 | 925,168 | 904,909 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Advisors |
||||||||||||||||||||
| AUM/A |
12,871 | 13,011 | 13,833 | 14,140 | 14,613 | |||||||||||||||
| Licensing |
6,505 | 6,609 | 7,746 | 7,895 | 6,201 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Advisors |
19,376 | 19,620 | 21,579 | 22,035 | 20,814 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
8