Envestnet (NYSE: ENV), a leading provider of unified wealth management
technology and services to financial advisors, today reported financial
results for its second quarter ended June 30, 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Financial Metrics
|
|
Three Months
Ended June 30,
|
|
%
|
|
|
|
Six Months
Ended June 30,
|
|
%
|
|
(in millions except per share data)
|
|
2015
|
|
2014
|
|
Change
|
|
|
|
2015
|
|
2014
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Revenues(1)
|
|
$
|
102.7
|
|
$
|
84.8
|
|
21%
|
|
|
|
$
|
199.1
|
|
$
|
163.4
|
|
22%
|
|
Adjusted EBITDA(1)
|
|
$
|
17.6
|
|
$
|
12.8
|
|
37%
|
|
|
|
$
|
34.4
|
|
$
|
24.6
|
|
40%
|
|
Adjusted Net Income per Share(1)
|
|
$
|
0.24
|
|
$
|
0.18
|
|
33%
|
|
|
|
$
|
0.46
|
|
$
|
0.35
|
|
31%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Results for the Second Quarter of 2015 Compared to the
Second Quarter of 2014:
-
Adjusted Revenues(1) increased 21% to $102.7 million for
the second quarter of 2015 from $84.8 million for the second quarter
of 2014.
-
Revenues from assets under management (AUM) or assets under
administration (AUA) increased 19% to $83.8 million for the second
quarter of 2015 from $70.7 million for the second quarter of 2014;
total revenues, which include licensing and professional services
fees, increased 21% to $102.7 million for the second quarter of 2015
from $84.8 million for the second quarter of 2014.
-
Adjusted EBITDA(1) increased 37% to $17.6 million for the
second quarter of 2015 compared to $12.8 million for the second
quarter of 2014.
-
Adjusted Net Income(1) was $8.9 million, or $0.24 per
diluted share, for the second quarter of 2015 compared to $6.6
million, or $0.18 per diluted share, for the second quarter of 2014.
-
Net income attributable to Envestnet, Inc. was $2.5 million, or $0.07
per diluted share, for the second quarter of 2015 compared to $3.7
million, or $0.10 per diluted share, for the second quarter of 2014.
“Envestnet continues to execute on our platform development strategy,
investing in innovative technology solutions which strengthen the
engagement between advisors and their end clients,” said Jud Bergman,
Chairman and CEO.
“During the second quarter, Envestnet onboarded $46 billion in new
assets from conversions, reflecting strong demand for our unified
offerings from large institutions and registered investment advisors. We
believe Envestnet remains well-positioned to deliver meaningful organic
growth, and to accelerate that growth through strategic activity, such
as our merger with Yodlee, announced today,” concluded Mr. Bergman.
Key Operating Metrics (AUM/A Only) as of and for the Quarter Ended
June 30, 2015:
-
Assets: $257.8 billion, up 23% from June 30, 2014
-
Accounts: 1,028,201, up 23% from June 30, 2014
-
Advisors: 29,541, up 18% from June 30, 2014
-
Gross sales: $22.0 billion, resulting in net flows of $7.0 billion
The following table summarizes the changes in AUM and AUA for the
quarter ended June 30, 2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of 3/31/15
|
|
Gross
Sales
|
|
Redemptions
|
|
Net Flows
|
|
Market Impact
|
|
Reclass to
Licensing
|
|
|
As of 6/30/15
|
|
|
|
(in millions except account data)
|
|
|
|
Assets under Management (AUM)
|
|
$
|
74,643
|
|
$
|
6,665
|
|
$
|
(4,629
|
)
|
|
$
|
2,036
|
|
$
|
(757
|
)
|
|
$
|
-
|
|
|
$
|
75,922
|
|
Assets under Administration (AUA)
|
|
|
181,239
|
|
|
15,330
|
|
|
(10,352
|
)
|
|
|
4,978
|
|
|
(1,157
|
)
|
|
|
(3,138
|
)
|
|
|
181,922
|
|
Total AUM/A
|
|
$
|
255,882
|
|
$
|
21,995
|
|
$
|
(14,981
|
)
|
|
$
|
7,014
|
|
$
|
(1,914
|
)
|
|
$
|
(3,138
|
)
|
|
$
|
257,844
|
|
Fee-Based Accounts
|
|
|
999,649
|
|
|
86,218
|
|
|
(47,859
|
)
|
|
|
38,359
|
|
|
|
|
(9,807
|
)
|
|
|
1,028,201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
During the second quarter, the Company added $1.3 billion of conversions
included in the above AUM/A gross sales figures, and an additional $44.4
billion of conversions in Licensing.
Review of Second Quarter 2015 Financial Results
Adjusted revenues increased 21% to $102.7 million for the second quarter
of 2015 from $84.8 million for the second quarter of 2014. The increase
was primarily due to a 19% increase in revenues from AUM or AUA to $83.8
million from $70.7 million in the prior year period. Revenue from
Finance Logix, acquired by the Company in May 2015, is included in the
second quarter beginning May 6, 2015.
Total operating expenses in the second quarter of 2015 increased 19% to
$96.2 million from $80.7 million in the prior year period. Cost of
revenues increased 12% to $42.5 million in the second quarter of 2015
from $38.0 million in the second quarter of 2014 due to the increase in
revenue from AUM or AUA. Compensation and benefits increased 27% to
$32.0 million in the second quarter of 2015 from $25.2 million in the
prior year period due to higher personnel cost from Placemark and
Finance Logix, as well as higher non-cash compensation expense. General
and administration expenses increased 20% to $15.5 million in the second
quarter of 2015 from $12.9 million in the prior year period, due partly
to the inclusion of Placemark and Finance Logix.
Income from operations was $6.5 million for the second quarter of 2015
compared to $4.2 million for the second quarter of 2014. Net income
attributable to Envestnet, Inc. was $2.5 million, or $0.07 per diluted
share, for the second quarter of 2015 compared to $3.7 million, or $0.10
per diluted share, for the second quarter of 2014. Adjusted EBITDA(1)
in the second quarter of 2015 was $17.6 million, compared to $12.8
million in the prior year period. Adjusted Net Income(1) was
$8.9 million, compared to $6.6 million in the second quarter of 2014.
Adjusted Net Income Per Share(1) was $0.24, compared to $0.18
in the second quarter of 2014.
At June 30, 2015, the Company had $199 million in cash and cash
equivalents, and its revolving credit facility was undrawn with $100
million available.
Conference Call
The Company will host a conference call to discuss second quarter 2015
financial results today at 5:00 p.m. ET. The live webcast can be
accessed from the Company's investor relations website at http://ir.envestnet.com/.
The conference call can also be accessed live over the phone by dialing
(888) 481-2864, or (719) 325-2187 for international callers. A replay
will be available beginning one hour after the call and can be accessed
from the Company’s investor relations website, or by dialing (877)
870-5176 or (858) 384-5517 for international callers; the conference ID
is 8683272. The dial-in replay will be available for one week and the
webcast replay will be available for one month following the date of the
conference call.
About Envestnet
Envestnet, Inc. (NYSE: ENV) is a leading provider of unified wealth
management technology and services to investment advisors. Our
open-architecture platforms unify and fortify the wealth management
process, delivering unparalleled flexibility, accuracy, performance, and
value. Envestnet solutions enable the transformation of wealth
management into a transparent, independent, objective, and fully-aligned
standard of care, and empower advisors to deliver better outcomes.
Envestnet | Tamarac's web-based platform for independent RIAs, Advisor®
Xi, deeply unifies portfolio management, modeling, rebalancing, trading,
billing, and reporting with a client portal and enterprise-level client
relationship management (CRM) system.
For more information about Envestnet | Tamarac's Advisor Xi, please
visit www.envestnet.com/tamarac
or follow @TamaracInc
(1) Non-GAAP Financial Measures
“Adjusted revenues” exclude the effect of purchase accounting on the
fair value of acquired deferred revenue. Under GAAP, we record at fair
value the acquired deferred revenue for contracts in effect at the time
the entities were acquired. Consequently, revenue related to acquired
entities for periods subsequent to the acquisition does not reflect the
full amount of revenue that would have been recorded by these entities
had they remained stand-alone entities.
“Adjusted EBITDA” represents net income before interest income, interest
expense, accretion on contingent consideration, income tax provision,
depreciation and amortization, non-cash compensation expense,
restructuring charges and transaction costs, fair market value
adjustment on contingent consideration, severance, litigation related
expense, other income and pre-tax loss attributable to non-controlling
interest.
“Adjusted net income” represents net income before non-cash interest
expense, accretion on contingent consideration, amortization of acquired
intangibles, non-cash compensation expense, restructuring charges and
transaction costs, fair-market value adjustment on contingent
consideration, severance, litigation related expense, other income, and
net loss attributable to non-controlling interest. Reconciling items,
excluding non-deductible transaction costs, are tax effected using the
income tax rates in effect on the applicable date.
“Adjusted net income per share” represents adjusted net income 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
revenues, net income or net income per share determined in accordance
with United States generally accepted accounting principles (GAAP).
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
Company’s ability to identify potential acquisition candidates, complete
acquisitions and successfully integrate acquired companies, 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 conditions, changes to the Company’s
previously reported financial information as a result of audit,
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 June 30,
2015 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.
Additional Information and Where to Find It
This communication does not constitute an offer to sell or the
solicitation of an offer to buy any securities or a solicitation of any
vote or approval. This communication may be deemed to be solicitation
material in respect of the proposed transaction between Envestnet and
Yodlee. In connection with the proposed transaction, Envestnet intends
to file a registration statement on Form S-4, containing a proxy
statement of Yodlee with the SEC. The final proxy statement/prospectus
will be delivered to the stockholders of Yodlee. This communication is
not a substitute for the registration statement, definitive proxy
statement/prospectus or any other documents that Envestnet or Yodlee may
file with the SEC or send to shareholders in connection with the
proposed transaction. SHAREHOLDERS ARE URGED TO READ ALL RELEVANT
DOCUMENTS FILED WITH THE SEC, INCLUDING THE PROXY STATEMENT/PROSPECTUS,
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED
TRANSACTION.
Shareholders will be able to obtain copies of the proxy
statement/prospectus and other documents filed with the SEC (when
available) free of charge at the SEC’s website, http://www.sec.gov.
Copies of documents filed with the SEC by Envestnet will be made
available free of charge on Envestnet’s website at www.envestnet.com.
Copies of documents filed with the SEC by Yodlee will be made available
free of charge on Yodlee’s website at www.yodlee.com.
Participants in Solicitation
Envestnet, Yodlee and their respective directors, executive officers and
other members of management and employees may be deemed to be
participants in the solicitation of proxies in respect of the proposed
transaction. Information about the directors and executive officers of
Envestnet is set forth in the proxy statement for Envestnet’s 2015
Annual Meeting of Stockholders, which was filed with the SEC on April
13, 2015, and Envestnet’s Annual Report on Form 10-K for the year ended
December 31, 2014, which was filed with the SEC on March 2, 2015.
Information about the directors and executive officers of Yodlee is set
forth in the proxy statement for Yodlee’s 2015 Annual Meeting of
Stockholders, which was filed with the SEC on April 10, 2015, and
Yodlee’s Annual Report on Form 10-K for the year ended December 31,
2014, which was filed with the SEC on March 4, 2015. Other information
regarding the participants in the proxy solicitation and a description
of their direct and indirect interests, by security holdings or
otherwise, will be contained in the proxy statement/prospectus and other
relevant materials filed with the SEC. You may obtain free copies of
these documents as described above.
|
|
|
|
|
|
|
|
|
Envestnet, Inc.
|
|
Condensed Consolidated Balance Sheets
|
|
(In thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
|
|
2015
|
|
2014
|
|
Assets
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
198,927
|
|
$
|
209,754
|
|
Fees and other receivables, net
|
|
|
|
|
29,232
|
|
|
20,345
|
|
Deferred tax assets, net
|
|
|
|
|
4,635
|
|
|
4,654
|
|
Prepaid expenses and other current assets
|
|
|
|
|
20,653
|
|
|
7,242
|
|
Total current assets
|
|
|
|
|
253,447
|
|
|
241,995
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
|
18,283
|
|
|
16,629
|
|
Internally developed software, net
|
|
|
|
|
7,999
|
|
|
7,023
|
|
Intangible assets, net
|
|
|
|
|
67,911
|
|
|
58,654
|
|
Goodwill
|
|
|
|
|
126,367
|
|
|
104,976
|
|
Deferred tax assets, net
|
|
|
|
|
-
|
|
|
565
|
|
Other non-current assets
|
|
|
|
|
11,621
|
|
|
9,516
|
|
Total assets
|
|
|
|
$
|
485,628
|
|
$
|
439,358
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accrued expenses
|
|
|
|
$
|
48,451
|
|
$
|
48,247
|
|
Accounts payable
|
|
|
|
|
6,402
|
|
|
4,869
|
|
Contingent consideration
|
|
|
|
|
7,422
|
|
|
6,405
|
|
Deferred revenue
|
|
|
|
|
7,872
|
|
|
5,159
|
|
Total current liabilities
|
|
|
|
|
70,147
|
|
|
64,680
|
|
|
|
|
|
|
|
|
|
Convertible notes
|
|
|
|
|
147,627
|
|
|
145,203
|
|
Contingent consideration
|
|
|
|
|
5,194
|
|
|
7,462
|
|
Deferred revenue
|
|
|
|
|
11,893
|
|
|
6,954
|
|
Deferred rent
|
|
|
|
|
4,122
|
|
|
3,588
|
|
Lease incentive
|
|
|
|
|
5,253
|
|
|
5,550
|
|
Deferred tax liabilities, net
|
|
|
|
|
224
|
|
|
-
|
|
Other non-current liabilities
|
|
|
|
|
2,100
|
|
|
2,430
|
|
Total liabilities
|
|
|
|
|
246,560
|
|
|
235,867
|
|
|
|
|
|
|
|
|
|
Redeemable units in ERS, LLC
|
|
|
|
|
1,500
|
|
|
1,500
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
237,012
|
|
|
201,435
|
|
Non-controlling interest
|
|
|
|
|
556
|
|
|
556
|
|
Total liabilities and equity
|
|
|
|
$
|
485,628
|
|
$
|
439,358
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Envestnet, Inc.
|
|
Condensed Consolidated Statements of Operations
|
|
(in thousands, except share and per share information)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Assets under management or administration
|
|
$
|
83,819
|
|
|
$
|
70,727
|
|
$
|
164,896
|
|
|
$
|
137,808
|
|
Licensing and professional services
|
|
|
18,844
|
|
|
|
14,102
|
|
|
34,221
|
|
|
|
25,560
|
|
Total revenues
|
|
|
102,663
|
|
|
|
84,829
|
|
|
199,117
|
|
|
|
163,368
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
|
42,486
|
|
|
|
37,955
|
|
|
81,181
|
|
|
|
72,392
|
|
Compensation and benefits
|
|
|
31,956
|
|
|
|
25,157
|
|
|
63,491
|
|
|
|
48,616
|
|
General and administration
|
|
|
15,512
|
|
|
|
12,936
|
|
|
29,721
|
|
|
|
25,086
|
|
Depreciation and amortization
|
|
|
5,725
|
|
|
|
4,615
|
|
|
11,058
|
|
|
|
9,037
|
|
Restructuring charges
|
|
|
518
|
|
|
|
-
|
|
|
518
|
|
|
|
-
|
|
Total operating expenses
|
|
|
96,197
|
|
|
|
80,663
|
|
|
185,969
|
|
|
|
155,131
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
6,466
|
|
|
|
4,166
|
|
|
13,148
|
|
|
|
8,237
|
|
Other income (expense)
|
|
|
(2,251
|
)
|
|
|
1,839
|
|
|
(4,454
|
)
|
|
|
1,920
|
|
Income before income tax provision
|
|
|
4,215
|
|
|
|
6,005
|
|
|
8,694
|
|
|
|
10,157
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision
|
|
|
1,679
|
|
|
|
2,355
|
|
|
3,647
|
|
|
|
3,639
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
2,536
|
|
|
|
3,650
|
|
|
5,047
|
|
|
|
6,518
|
|
|
|
|
|
|
|
|
|
|
|
Add: Net loss attributable to non-controlling interest
|
|
|
-
|
|
|
|
69
|
|
|
-
|
|
|
|
195
|
|
Net income attributable to Envestnet, Inc.
|
|
$
|
2,536
|
|
|
$
|
3,719
|
|
$
|
5,047
|
|
|
$
|
6,713
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share attributable to Envestnet, Inc.:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.07
|
|
|
$
|
0.11
|
|
$
|
0.14
|
|
|
$
|
0.20
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$
|
0.07
|
|
|
$
|
0.10
|
|
$
|
0.13
|
|
|
$
|
0.18
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
35,776,125
|
|
|
|
34,547,277
|
|
|
35,463,623
|
|
|
|
34,332,759
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
37,654,074
|
|
|
|
36,805,758
|
|
|
37,504,028
|
|
|
|
36,726,121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Envestnet, Inc.
|
|
Condensed Consolidated Statements of Cash Flows
|
|
(In thousands)
|
|
(Unaudited)
|
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
OPERATING ACTIVITIES:
|
|
|
|
|
|
Net income
|
|
$
|
5,047
|
|
|
$
|
6,518
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
|
11,058
|
|
|
|
9,037
|
|
|
Deferred rent and lease incentive
|
|
|
219
|
|
|
|
1,123
|
|
|
Provision for doubtful accounts
|
|
|
37
|
|
|
|
-
|
|
|
Deferred income taxes
|
|
|
808
|
|
|
|
-
|
|
|
Stock-based compensation
|
|
|
6,749
|
|
|
|
5,767
|
|
|
Excess tax benefits from stock-based compensation
|
|
|
(15,495
|
)
|
|
|
(3,203
|
)
|
|
Interest expense
|
|
|
4,697
|
|
|
|
-
|
|
|
Accretion on contingent consideration
|
|
|
651
|
|
|
|
824
|
|
|
Fair market value adjustment on contingent consideration
|
|
|
(1,902
|
)
|
|
|
(460
|
)
|
|
Changes in operating assets and liabilities, net of acquisitions:
|
|
|
|
|
|
Fees and other receivables
|
|
|
(8,825
|
)
|
|
|
(5,009
|
)
|
|
Prepaid expenses and other current assets
|
|
|
2,090
|
|
|
|
2,455
|
|
|
Other non-current assets
|
|
|
(1,244
|
)
|
|
|
(1,136
|
)
|
|
Accrued expenses
|
|
|
(6,323
|
)
|
|
|
(1,559
|
)
|
|
Accounts payable
|
|
|
1,439
|
|
|
|
1,200
|
|
|
Deferred revenue
|
|
|
5,978
|
|
|
|
2,190
|
|
|
Other non-current liabilities
|
|
|
(330
|
)
|
|
|
144
|
|
|
Net cash provided by operating activities
|
|
|
4,654
|
|
|
|
17,891
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES:
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(4,912
|
)
|
|
|
(4,841
|
)
|
|
Capitalization of internally developed software
|
|
|
(2,208
|
)
|
|
|
(1,651
|
)
|
|
Investment in private company
|
|
|
(1,500
|
)
|
|
|
-
|
|
|
Acquisition of businesses, net of cash acquired
|
|
|
(21,712
|
)
|
|
|
-
|
|
|
Net cash used in investing activities
|
|
|
(30,332
|
)
|
|
|
(6,492
|
)
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES:
|
|
|
|
|
|
Proceeds from exercise of stock options
|
|
|
5,909
|
|
|
|
1,615
|
|
|
Purchase of treasury stock for stock-based minimum tax withholdings
|
|
|
(6,555
|
)
|
|
|
(1,695
|
)
|
|
Excess tax benefits from stock-based compensation
|
|
|
15,495
|
|
|
|
3,203
|
|
|
Issuance of restricted stock
|
|
|
2
|
|
|
|
-
|
|
|
Net cash provided by financing activities
|
|
|
14,851
|
|
|
|
3,123
|
|
|
|
|
|
|
|
|
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
|
(10,827
|
)
|
|
|
14,522
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
|
|
209,754
|
|
|
|
49,942
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
|
$
|
198,927
|
|
|
$
|
64,464
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Envestnet, Inc.
|
|
Reconciliation of Non-GAAP Financial Measures
|
|
(in thousands, except share and per share information)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
102,663
|
|
|
$
|
84,829
|
|
|
$
|
199,117
|
|
|
$
|
163,368
|
|
|
Deferred revenue fair value adjustment
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Adjusted revenues
|
|
$
|
102,663
|
|
|
$
|
84,829
|
|
|
$
|
199,117
|
|
|
$
|
163,368
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
2,536
|
|
|
$
|
3,650
|
|
|
$
|
5,047
|
|
|
$
|
6,518
|
|
|
Add (deduct):
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
(89
|
)
|
|
|
(14
|
)
|
|
|
(211
|
)
|
|
|
(95
|
)
|
|
Interest expense
|
|
|
2,341
|
|
|
|
-
|
|
|
|
4,697
|
|
|
|
-
|
|
|
Accretion on contingent consideration
|
|
|
309
|
|
|
|
412
|
|
|
|
651
|
|
|
|
824
|
|
|
Income tax provision
|
|
|
1,679
|
|
|
|
2,355
|
|
|
|
3,647
|
|
|
|
3,639
|
|
|
Depreciation and amortization
|
|
|
5,725
|
|
|
|
4,615
|
|
|
|
11,058
|
|
|
|
9,037
|
|
|
Non-cash compensation expense
|
|
|
3,330
|
|
|
|
3,199
|
|
|
|
6,749
|
|
|
|
5,767
|
|
|
Restructuring charges and transaction costs
|
|
|
1,539
|
|
|
|
583
|
|
|
|
2,969
|
|
|
|
687
|
|
|
Fair market value adjustment on contingent consideration
|
|
|
(456
|
)
|
|
|
(460
|
)
|
|
|
(1,902
|
)
|
|
|
(460
|
)
|
|
Severance expense
|
|
|
262
|
|
|
|
-
|
|
|
|
855
|
|
|
|
4
|
|
|
Litigation related expense
|
|
|
-
|
|
|
|
17
|
|
|
|
-
|
|
|
|
17
|
|
|
Other income
|
|
|
-
|
|
|
|
(1,825
|
)
|
|
|
-
|
|
|
|
(1,825
|
)
|
|
Pre-tax loss attributable to non-controlling interest
|
|
|
437
|
|
|
|
296
|
|
|
|
867
|
|
|
|
486
|
|
|
Adjusted EBITDA
|
|
$
|
17,613
|
|
|
$
|
12,828
|
|
|
$
|
34,427
|
|
|
$
|
24,599
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
2,536
|
|
|
$
|
3,650
|
|
|
$
|
5,047
|
|
|
$
|
6,518
|
|
|
Add (deduct):
|
|
|
|
|
|
|
|
|
|
Non-cash interest expense
|
|
|
914
|
|
|
|
-
|
|
|
|
1,838
|
|
|
|
-
|
|
|
Accretion on contingent consideration
|
|
|
185
|
|
|
|
247
|
|
|
|
390
|
|
|
|
494
|
|
|
Amortization of acquired intangibles
|
|
|
2,137
|
|
|
|
1,532
|
|
|
|
4,020
|
|
|
|
2,998
|
|
|
Non-cash compensation expense
|
|
|
1,997
|
|
|
|
1,920
|
|
|
|
4,049
|
|
|
|
3,461
|
|
|
Restructuring charges and transaction costs
|
|
|
937
|
|
|
|
451
|
|
|
|
1,865
|
|
|
|
513
|
|
|
Fair market value adjustment on contingent consideration
|
|
|
(273
|
)
|
|
|
(276
|
)
|
|
|
(1,141
|
)
|
|
|
(276
|
)
|
|
Severance expense
|
|
|
158
|
|
|
|
-
|
|
|
|
513
|
|
|
|
2
|
|
|
Litigation expense
|
|
|
-
|
|
|
|
10
|
|
|
|
-
|
|
|
|
10
|
|
|
Other income
|
|
|
-
|
|
|
|
(1,095
|
)
|
|
|
-
|
|
|
|
(1,095
|
)
|
|
Net loss attributable to non-controlling interest
|
|
|
262
|
|
|
|
177
|
|
|
|
520
|
|
|
|
292
|
|
|
Adjusted net income
|
|
$
|
8,853
|
|
|
$
|
6,616
|
|
|
$
|
17,101
|
|
|
$
|
12,917
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted number of weighted-average shares outstanding
|
|
|
37,654,074
|
|
|
|
36,805,758
|
|
|
|
37,504,028
|
|
|
|
36,726,121
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income per share
|
|
$
|
0.24
|
|
|
$
|
0.18
|
|
|
$
|
0.46
|
|
|
$
|
0.35
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Adjustments, excluding non-deductible transaction costs, are
tax effected using an income tax rate of 40.0% for 2015 and 2014.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Envestnet, Inc.
|
|
Historical Assets, Accounts and Advisors
|
|
(in millions, except account and advisor data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
March 31,
|
|
June 30,
|
|
|
|
2014
|
|
2014
|
|
2014
|
|
2015
|
|
2015
|
|
|
|
(in millions, except accounts and advisor data)
|
|
Platform Assets
|
|
|
|
|
|
|
|
|
|
|
|
Assets Under Management (AUM)
|
|
$
|
53,063
|
|
$
|
54,935
|
|
$
|
72,120
|
|
$
|
74,643
|
|
$
|
75,922
|
|
Assets Under Administration (AUA)
|
|
|
156,723
|
|
|
164,639
|
|
|
174,249
|
|
|
181,239
|
|
|
181,922
|
|
Subtotal AUM/A
|
|
|
209,786
|
|
|
219,574
|
|
|
246,369
|
|
|
255,882
|
|
|
257,844
|
|
Licensing
|
|
|
412,141
|
|
|
448,169
|
|
|
466,982
|
|
|
493,284
|
|
|
534,674
|
|
Total Platform Assets
|
|
$
|
621,927
|
|
$
|
667,743
|
|
$
|
713,351
|
|
$
|
749,166
|
|
$
|
792,518
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Platform Accounts
|
|
|
|
|
|
|
|
|
|
|
|
AUM
|
|
|
239,367
|
|
|
255,359
|
|
|
310,351
|
|
|
319,896
|
|
|
332,738
|
|
AUA
|
|
|
596,886
|
|
|
642,192
|
|
|
667,274
|
|
|
679,753
|
|
|
695,463
|
|
Subtotal AUM/A
|
|
|
836,253
|
|
|
897,551
|
|
|
977,625
|
|
|
999,649
|
|
|
1,028,201
|
|
Licensing
|
|
|
1,659,313
|
|
|
1,830,678
|
|
|
1,881,352
|
|
|
1,982,773
|
|
|
2,044,355
|
|
Total Platform Accounts
|
|
|
2,495,566
|
|
|
2,728,229
|
|
|
2,858,977
|
|
|
2,982,422
|
|
|
3,072,556
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advisors
|
|
|
|
|
|
|
|
|
|
|
|
AUM/A
|
|
|
24,945
|
|
|
24,887
|
|
|
28,605
|
|
|
29,023
|
|
|
29,541
|
|
Licensing
|
|
|
8,583
|
|
|
11,266
|
|
|
11,632
|
|
|
12,306
|
|
|
12,870
|
|
Total Advisors
|
|
|
33,528
|
|
|
36,153
|
|
|
40,237
|
|
|
41,329
|
|
|
42,411
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20150810006282/en/
Copyright Business Wire 2015